Business

Galaxy Note 10 production reportedly disrupted by trade dispute

With the Galaxy Note 10 set to be unveiled on August 7, Samsung has already begun production of its next flagship smartphone. However, it appears that the ongoing trade dispute between South Korea and Japan is causing some problems. A new report claims that the Galaxy Note 10 production is facing disruption because of these issues.

In a protest against a ruling from South Korea’s Supreme Court, Japan has imposed tough economic sanctions on Samsung’s home country. They target materials used in the production of semiconductors and mobile displays. Samsung relies on Japanese imports for almost 90 percent of these materials.

Japan’s export controls may impact Galaxy Note 10 production

Local Korean broadcaster JTBC quoted a Samsung official in a report as saying that “This month, Samsung has cut by 10 percent the target production of the Exynos, a mobile processor that will be used for the Note 10,” adding that the missing 10 percent will be produced next month.

The Galaxy Note 10 will be powered by the Exynos 9825 processor. It’s the 7nm iteration of the Exynos 9820 which was introduced with the Galaxy S10 earlier this year. Samsung will offer the Snapdragon 855-powered Galaxy Note 10 but only in select markets. The Exynos variants account for the bulk of its shipments so Samsung will be concerned about this.

Samsung declined to confirm reports of production disruption. Industry watchers suggest that the trade dispute may have forced Samsung to adjust the manufacturing timeline amidst the very real possibility of running out of these chemical products that are crucial for production. Japan has restricted the exports of fluorinated polyimide, hydrogen fluoride and resists to South Korea. Japanese companies exporting these products to South Korea will now have to seek approval from the government which could take at least 90 days.

It’s no surprise that Samsung’s top man has made an extended trip to Japan since these export restrictions spell trouble for the company. However, a solution would not be possible until both countries take a step back from their respective positions.

Join the Discussion