Japan is set to restrict the export of key chemicals (used in the production of vital electronics part) to South Korea. This was reported by the Japanese newspaper – Sankei. This coincidentally comes after South Korea’s Supreme court ruled that Koreans have not being compensated enough by Japanese companies since after the forced labour of WWII (World War 2)
The Key Chemicals are;
- Fluorinated Polyimide: Used in the production of smartphones and TV displays.
- Resists: Used in soldering chips to PCBs ( Polychlorinated biphenyls)
- High-purity Hydrogen Fluoride: Used in ethching semiconductors.
It is a big deal because; Japan produces 90% of the world’s Fluorinated Polyimide, 70% of the resists which makes it extremely difficult for Samsung and LG to find alternatives mostly in the case of getting fluorinated polyimide.
Japanese producers who are still interested to export to South Korea will need to apply for an Export Permission which takes about 90 Days.
Unless the issue is resolved, Japan will remove South Korea from the whitelist in July 4.