U.S. Tech Firms Voice Fears Over Japan's Export Curbs
25 July, 2019
The U.S. tech industry is gripped by fear over Japanese curbs on exports of high-tech materials and parts to Korea. They fear that the entire global IT industry, which is deeply interconnected, could suffer if Korean semiconductor giants are unable to keep up supplies.
Six U.S. industry organizations wrote to both Seoul and Tokyo on Tuesday calling for a stop to the trade dispute.
They included the Semiconductor Industry Association, which includes major U.S. firms like Intel, IBM, Qualcomm, Micron and Nvidia, and the Consumer Technology Association, which hosts the annual Consumer Electronics Show in Las Vegas.
Protesters hold placards criticizing Tokyo's export curbs against Korea at a press conference in Seoul on Wednesday. /Newsis
In the letters to Japanese Economy Minister Hiroshige Seko and Korea's chief trade negotiator Yoo Myung-hee, they expressed dismay over Tokyo's export curbs.
They pointed out that the global IT industry depends on a complicated supply network and a system of timely supply of parts and materials, and Korea and Japan are a vital part of the global "value chain."
"The non-transparent and unilateral changes in [Tokyo's] export control policies can cause supply chain disruptions, delays in shipments, and ultimately long-term harm to the companies that operate within and beyond your borders and the workers they employ," they warned.
They urged the two countries to seek a swift solution and refrain from taking actions that will further worsen the situation if they want to avoid long-term damage.
"There is speculation that Micron Technology and TSMC will ultimately benefit from the dispute, but it won't be easy for them to expand production capacity in the short term," an industry insider said. "Production delays at Samsung and SK Hynix could shake up the entire global IT industry."
Samsung and SK Hynix take up 70 percent of the global DRAM market.
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