South Korean companies produce 70% of the world’s DRAM chips, about half of 3D NAND and a large proportion of OLED and LCD displays. Japanese suppliers now manufacture between 70 and 90 percent of the three key materials used to manufacture these components. The two countries have decades of dispute over the negotiations, and Japan has recently introduced new export regulations that could disrupt the supply of raw materials to Korea, which in turn would affect the supply of DRAMs, NANDs and various types of displays.
DRAM, 3D NAND would be out of stock
JSR, Showa Denko (SDK) and Shin-Etsu Chemical of Japan control 90 percent of the world’s supply of polyimides (for both LCDs and OLEDs), light curtains and high purity hydrogen fluoride (for chips such as LSI, DRAM, and NAND). Starting July 4, Japanese manufacturers will be required to obtain approval for individual exports of these chemicals to South Korea. Export approvals can take up to three months, and Korean companies usually have a material stock of one to two months.
If South Korean companies cannot source enough chemicals from their Japanese partners or competitors in other countries, they will have to stop production, which would have a drastic global impact by supplying DRAMs, 3D NANDs, LCDs, and OLEDs.
Source: AnandTech