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Japan-Korea trade dispute alarmed US semiconductor industry

Sunday,Jul 28,2019

Foreign media said that the US electronics industry expressed concern about Japan's export restrictions and sent a letter to the governments of South Korea and Japan urging to resolve this issue as soon as possible. This is the first time that the US industry has officially expressed its opinion on Japan's measures. It is reported that under this circumstance, the South Korean trade minister who is visiting the United States, Liu Mingxi, met with Congress and government officials and will report to them that South Korea’s Samsung Electronics and SK Hynix provide the world’s semiconductor dynamic random access memory (DRAM). Demand 72% of the products and persuade them to take action.

South Korea’s East Asia Daily reported on July 25 that six associations, including the American Semiconductor Industry Association, the National Manufacturing Association, and the International Semiconductor Equipment and Materials Organization, issued an open letter to Liu Mingxi and Japanese Minister of Economy, Trade and Industry, Shigehiro Hiroshi on July 24. The associations said in an open letter: "We urge the two countries to seek a speedy resolution without further aggravating the situation to avoid long-term losses in the global ICT industry and manufacturing."
According to the report, the letter emphasizes: "The global ICT industry and the manufacturing supply chain are intertwined with each other and rely on systems that can effectively deploy parts, materials, and technologies when necessary." "Japan and South Korea are in this international division of labor. The system plays an important role."
These associations warned that the move would also make Japan "self-sufficient." The letter said that "policy changes such as opaque and unilateral export restrictions may lead to supply chain collapse, delay in delivery, etc.", "In the long run, not only in the domestic market, but also in companies operating factories in foreign countries. Workers have long-term negative effects."
According to the report, the American Semiconductor Industry Association, which leads this open letter, is considered to be the most influential organization in the US electronics industry. It is led by five well-known American semiconductor companies including Intel, Qualcomm and Micron. Whenever the US semiconductor industry faces a crisis, it will strongly advocate self-defense. Relevant people in the semiconductor industry commented: "When the United States began attacking the Japanese semiconductor industry for nearly 10 years in the mid-1980s, this group had rushed to the front." "The group may take concrete actions."