This Is Why Japan And South Korea Would Make Smartphones More Expensive

The current trade war between the US and China has been catching a lot of eyes all over the world for a long time because of its serious implications. However, if you’re still unaware, there’s another trade war that has been triggered on the sidelines. The two opponents in the mid of the trade war, this time, are South Korea and Japan. As reported by CNBC, two countries and their conflict could make smartphone price get more expensive.

According to the report, Japan has put tighter norms on several chemical supplies which are exported to South Korea. Notably, those certain chemicals are playing a vital role in making semiconductors, meaning that they are fundamental elements to make most of the electronics components in gadgets and devices, especially chips and smartphones.

As of now, some biggest phone makers like Huawei and Apple are also buyers of chips manufactured by South Korean companies. The country is now home to two of the largest semiconductor makers – Samsung Electronics and SK Hynix, counting a total of more than 60% of global component supply in the memory chip industry, as CNBC said. Unsurprisingly, analysts give a predict saying that the escalation of the Japan-South Korea trade war could lead to an adverse effect on electronics products’ prices, especially smartphones.

At present, semiconductor manufacturers are said to have a “high level of inventory” although the question of how long this level will last is uncertain. Both companies from the US and China are heavily dependent on those chipsets, so it could be a matter of time when people will be charged more for their smartphones if the trade war persists.

It’s difficult for South Korea while Japan is producing roughly 70% of the world’s hydrogen fluoride.