The trade conflict between the United States and China has shaken up the Tech industry with each other: Long-term partnerships have been terminated, revoked licences, and bans imposed. Chinese companies like Huawei has been their dependence on the Android operating system too clearly. US companies such as Apple, Microsoft, Dell, or HP, in turn, want to shift their production, at least partially, in other Asian countries outside of China. In the conversation, among other things, Vietnam, Indonesia and India. One can say without exaggeration: Nothing is as it was before.
Japan pulls the thumb screws
another political conflict could get companies like user feel coming soon: For decades, a dispute between Japan and South Korea, having now reached its next level of escalation simmering. A report on the Japanese economy service, “Nikkei Asian Review”, according to Japan introduced on Monday other restrictions on the Export of important semiconductor and Display materials, the South Korean company for the production of Chip products need. The decision was based on the grounds that the trust relations between the two countries were adversely affected in a significant way.
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For the South Korean Chip manufacturer, this could be a Problem: companies are hoarding usually is only supplies for one to two months. The Japanese should be encouraged to participate in the testing time, it could lead to bottlenecks, possibly, the production had to be throttled.
South Korea has dominated the Chip market
The new rule is controversial, because two of the world’s largest provider of memory chips – Samsung and SK Hynix of South Korea. The South Korean manufacturers dominate the world market: Approximately 70 percent of the world’s memory, and 50 percent of the Flash memory, which are installed in Laptops, Smartphones and Tablets, are manufactured here.
These Chips are stuck in Apple’s iPhone and Smartphones from Huawei, also in Laptops from HP and Lenovo, or TVs from Sony and Panasonic. The decision of the Japanese could be a boomerang: Would have to choke big corporations such as Apple, therefore, their production would have a significant impact economically on the Japanese suppliers.
South Korea criticized Japan
From the environment of SK Hynix said, the company would have had no supplies for three months. The company would be forced, therefore, in a few weeks, to stop the production. Samsung is not going to investigate the Situation more precisely, a Statement has yet to be applied. The company LG Display is affected by the restrictions.
South Korea has been criticized on Monday the decision of the Japanese, and counter-measures in accordance with “domestic and international law,” announced. Also a complaint to the world trade organization WTO standing in the room. Seoul has called in in addition, the Japanese Ambassador to Tokyo’s economic retaliation.
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Japan seems to be unaffected: In August, the country South Korea wool to remove the “Whitelist” of the exporting Nations that includes 27 friendly Nations – including the USA, Germany and France. So far, no country has been removed from this list.
A dispute with story
The Background of the conflict between South Korea and Japan goes back to the beginning of the 20th century. Century. The Peninsula of Korea between 1905 and September 1945 under Japanese control. Alone in the Second world war, hundreds of thousands of South Korean workers were forced to work against their will in Japan.
Since then, demanded compensation from the Japanese companies. In March, a South Korean court sentenced the values of a number of Japanese companies and confiscated the assets. The export restriction will be seen, therefore, as a reaction to the court decision.
source: Nikkei Asian Review, KBS
