Samsung Says It Won’t Boost US Chip Production Despite Japan Trade Tension

Samsung’s South Korean manufacturing is believed to have been slowed down as a result of a scarcity of supplies coming from Japan, as a result of commerce sanctions between the 2 international locations.

More lately, it’s been rumored that Samsung would possibly take a look at different manufacturing services to take care of these struggles, together with a possible enhance of chip manufacturing on the Austin, Texas plant.

But in keeping with the South Koreans, this isn’t the case, as Samsung not solely that it doesn’t need to broaden US operations, however can also be contemplating constructing a brand new facility in its residence market.

“The US plant was purported to supply chips for Apple, and expansion is possible if the foundry orders increase,” an organization official was quoted as saying by Korea Herald. “But it’s not likely that the US expansion would be a solution to the Japanese export restrictions.”

Samsung at present operates a foundry facility to construct chips for company clients, together with Apple, in Texas. The foundry enterprise was arrange in 1996.

“Rather than increasing the capacity of the US plant, it is more likely that the company will build a hydrogen fluoride manufacturing facility in Korea,” the official added.

Samsung in search of extra suppliers

On the opposite hand, Samsung is looking for new suppliers that might assist the corporate take care of the commerce tensions between South Korea and Japan.

The manufacturing of some Samsung elements, together with chips and shows, is claimed to have been slowed down after Japanese began requesting momentary permits for exports of three chemical substances which are important within the manufacturing of such components.

Several Samsung clients, together with Apple and Microsoft, met with firm officers this month to debate the manufacturing challenges, particularly because the output of a number of elements might be impacted.

The manufacturing of Samsung’s personal Galaxy Note 10 is also affected. The system is projected to be unveiled in early August after which go on sale later the identical month.