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OCTOBER 2019    TAP TIMES          -4-             It is almost a certainty, that a year ago
                                                                South Korea semiconductor makers were
                                                                not anticipating that Japan would restrict
                      Casebook (from 3)                         sale of the many ultra-high-purity chemi-
                                                                cals the South Koreans have been using
                                                                for decades.
        and its South Korea competitors, such as
        memory maker SK Hynix recently invoked
        the longstanding ire of Japan.




        Political standoff
        Japan issued new export controls against
        South Korea, which said the New York
        Times (Aug. 1, 2019) is a “political stand-
        off that has plunged relations between
        the two countries to their lowest point in
        decades and that has caused worrries in
        Washington.”

                                                                Semiconductor memory maker SK Hynix has been test-
        Japanese officials said they were removing              ing non-Japanese-made semiconductor chemistry as an
        South Korean companies from a “White                    alternate to Japanese products.
        List” of countries that receive preferential
        treatment on imports of “sensitive” Japa-
        nese-made goods.                                        The U.K. leaves the EU
                                                                Sometimes, even when a company’s buy-
                                                                ers think their sourcing is solid, not sub-
        Multiple sourcing                                       ject to interruption, events occur that
        South Korea’s President Moon-                           upset everything.
        Jae-in (right), condemned
        Japan’s new restrictions. The                           Such was the case with Brexit (a combi-
        Asia Times recently reported                            nation of British and Exit), when citizens
        that Samsung has placed a                               of the United Kingdom narrowly voted on
        new, non-Japanese semicon-                              June 23, 2016 to separate (51.9% in fa-
        ductor etchant into production lines in a               vor) from the European Union.
        move away from its sole sourcing of Japa-
        nese chemicals.                                         This withdrawal will end a nearly 47-year
                                                                membership in the EU, which began under
        It is likely, The Times said, that Samsung              the Conservative government of Edward
        has begun using etchants made domesti-                  Heath in 1973.  This separation is to be
        cally.  At the very least, added The Times,             final on October 31.
        Samsung and Hynix have tested non-
        Japanese made version of many chemicals                 The ramifications are enormous.  Citizens
        used in semiconductor production.                       of the U.K., who used to move around
                                                                freeley within borders of the EU member

        Under the tight new export regulations,                 countries will find they now need official
        Japanese chemical makers must obtain                    papers to do so.
        individual approval from their government
        when they export etchants, as well as                   Parts and materials which were once
        fluoride polyimide, used in displays.                   transported from EU-country to EU-coun-
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