Global chip supply at risk as Japan and South Korea feud

Disruption at SK Hynix and Samsung threatens to affect Apple, Huawei and Sony

20190701 japan and south korea

Semiconductors form a close link between the high-tech economies of Japan and South Korea. 

JUNICHI SUGIHARA, HIROMITSU GOTO and KENICHI YAMADA, Nikkei staff writers

TOKYO/SEOUL -- Japan's new export controls on South Korea, a country that produces the bulk of the world's memory chips, threaten a ripple effect that spreads beyond the two wary neighbors to electronics manufacturing globally.

The restrictions announced Monday mark the latest setback in a bilateral relationship fraught with colonial-era grievances. The move prompted Seoul to say it was considering retaliatory measures and left chipmakers to confront an immediate supply challenge.

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