Samsung Note 10 Hurt By Japan-Korea Trade Dispute

An ongoing dispute between Japan and South Korea dating back to World War II has reportedly disrupted production of Samsung’s upcoming Note 10 smartphone.

The Korean tech giant’s new phone is due to be unveiled next month, but a new report from a Korean broadcaster has revealed Samsung has cut production targets.

A Samsung executive told the broadcaster JTBC the company cut its target production of the Exynos 9825 chips to be used in the new phone by 10 per cent this month, according to Samsung-focused blog SamMobile.

The report claims production of that 10 per cent will be made up next month.

Samsung will also offer a version of the Note 10 powered by the Snapdragon 855 in some markets, but the majority will use the in-house Exynos system-on-chip.

It’s believed Samsung has scaled back production over fears they could run out of the materials imported from Japan.

Earlier this month Japan begun tightening restrictions on the export of materials to South Korea over a dispute stemming back to forced labour during Japan’s occupation of Korea from 1910 to 1945.

Last year South Korea ruled Japanese firms including Nippon Steel and Mitsubishi Heavy Industries would be forced to compensate some surviving workers.

Japan argues the issue was already settled in 1965 during the restoration of the diplomatic relationship between the two countries.

Since the compensation rulings Japan has restricted supplies of hydrogen fluoride gas, fluorinated polyimide, and photoresists into Korea, key ingredients in displays and semiconductor manufacturing, where Samsung makes the bulk of its money.

South Korea is the biggest producer of chips and Japan is the biggest supplier of the chemicals used in their manufacture.