Japan approves consignment of chemicals for NAND and DRAM production in South Korea

The Government of Japan approves the export of chemical products to South Korea, to try to reduce a little the commercial tension between the two countries.

The trade war between the United States and China is costing American companies a lot of money. But it's not the only one of these open wars currently raging. There's considerable tension between Japan and South Korea over a decades-old conflict that seemed to have been forgotten. Japan is delaying the delivery of chemical products to South Korea.

Specifically, polyimides, hydrogen fluoride and photoresist are blocked. These substances are used mainly in the manufacture of NAND and DRAM chips, as well as to manufacture OLED and LCD screens. South Korean companies have limited stock, and retention at Japanese customs is typically delayed for two to four months. But it seems that the tension would be reducing.

It seems that the tension between South Korea and Japan is easing

Japan currently produces between 70% and 90% of these critical chemicals for South Korean companies. Shipments are delayed for an average of three months, after being manually reviewed. South Korean companies only store products for a month, due to the danger of these substances.

Japan's own Minister of Industry has approved the purchase requests that have been made by South Korea. It seeks to solve part of the supply problem and avoid a world crisis. DRAM and NAND chip shortages could lead to notable price increases.

It should be noted that the Minister of Industry of Japan has indicated that they do not normally make such announcements. He stressed that if they have done so it is because they are exceptional circumstances, so they have made it known after learning that the South Korean government speaks of the attitude of the Japanese government to ban exports. It has been wanted to make it clear through the quick approval that what the South Korean government said is not true. They have also highlighted that the manual approval will remain in effect.

Source: Anandtech