South Korean chip giants face 'strangling' from Japanese export curbs by juminism HeekyongYang
The guidance seen by Reuters cautioned that Japanese firms can rightly refuse to ship the materials from third countries, and that any efforts to bypass restrictions could subject both chipmakers and suppliers to broader international trade sanctions.
Yield is especially important in manufacturing memory chips, used in everything from smartphones to vehicles and where Samsung and SK Hynix control more than half of the global market. Samsung said Japanese curbs on the export of chip-making materials were blurring its business outlook as it reported a halving in quarterly profit on Wednesday.
The curbs on photoresists only apply to those used in producing chips based on an advanced technique known as extreme ultraviolet or EUV lithography. South Korean chipmakers and their local suppliers are bracing for further moves by Tokyo to drop South Korea as a preferred trading partner, which would mean tighter regulations for a broader range of chip products bound for South Korea.
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