The South Korean panel producer, LG Display, has begun preparations to take care of the results of the trade dispute between South Korea and Japan on chemical compounds utilized in chip and show manufacturing, in accordance to Supply Chain Dive.
Following LG Display’s second-quarter earnings name final week, the corporate is set to look into different suppliers for the impacted chemical compounds.
“There are so far no concerns that significantly affect the company, but we are making preparations by ensuring uninterrupted sourcing for the short term and diversifying sourcing channels over the medium term,” commented LG Display’s CFO Dong-Hee Suh.
Having lately positioned export restrictions on three chemical compounds — hydrogen fluoride gasoline, fluorinated polyimide and photoresists — which are utilized in expertise manufacturing, Japan has pointed to nationwide safety issues and have stated that the chemical compounds probably have army makes use of for the long run.
According to knowledge by The Observatory of Economic Complexity, Japan exported roughly $54.8mn value of hydrogen fluoride in 2017, with 81% of this going to South Korea. Japan additionally produces round 90% of the world’s fluorinated polyimides that make it tougher to discover various suppliers.
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