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Japan-South Korea rift

China caught in crossfire of Tokyo-Seoul chipmaking feud

Global semiconductor industry at risk as Japan readies next round of export controls

A chip developed by Huawei unit HiSilicon is displayed. China wants to nurture a home-grown chip industry, but it is still reliant on South Korea.   © Reuters

SEOUL/GUANGZHOU/TOKYO -- Japan's plan to impose further export restrictions on Seoul is casting a shadow over China's technology sector, which now relies heavily on South Korean companies for its semiconductor supply.

Major South Korean chipmakers Samsung Electronics and SK Hynix together are responsible for about 50% to 70% of the world's memory chip market, and they produce a sizable chunk of that in China using materials imported from Japan. But Tokyo could slam the brakes on those shipments, which could also have implications for the global chip industry.

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