Friday, July 5th 2019

Japan and South Korea Disagreements Could Compromise Global Memory Supply

According to Nikkei, the newly established trade limitations between Japan and South Korea, could end up compromising global memory supply by simply restricting chemicals export. As the report says, Japan has limited its export of three vital chemicals (like orthophosphoric, hydrobromic and citric acid) used in semiconductor manufacturing, to South Korea.

Unlike before, a company that exports a chemical, now has to ask for a permission from the Japanese government, so it could supply the semiconductor foundries in South Korea. The end result of such move could be severely damaged global memory supply, as over 70% of DRAM and over 50% of NAND memory is manufactured in South Korea. Government processing of applications for exporting chemicals is estimated to take about three months, while the memory makers usually only hold around one of two months of extra supply for manufacturing. SK Hynix, a third biggest memory manufacturer by revenue, said that if it doesn't get enough stock of materials, it would have to halt production. Samsung is asserting the situation for now, without any elaboration on that. These events could lead to increased memory price and overall less supply.
Source: Nikkei
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38 Comments on Japan and South Korea Disagreements Could Compromise Global Memory Supply

#1
bug
Japan has limited it's export
Typo
Samsung is asserting the situation for now
Really?
Posted on Reply
#2
Alexandrus
Yeah, sure, "disagreements", right after the memory prices dropped drastically after 2 years of huge prices.
Posted on Reply
#3
ixi
WD and Toshiba had power outtage and now this . Kinda smells fabricated, but hey, that's just me.
Posted on Reply
#4
brian111
ixi, post: 4075206, member: 151815"
WD and Toshiba had power outtage and now this . Kinda smells fabricated, but hey, that's just me.
If you aren't price fixing and cheating are you really trying?
Posted on Reply
#5
dorsetknob
"YOUR RMA REQUEST IS CON-REFUSED"
, Japan has limited it's export of three vital chemicals (like orthophosphoric, hydrobromic and citric acid)
What "Citric Acid" Don't they grow and harvest fruit in Korea.
Its not an Embargoed Commodity its Available on the world market.
This Quest to find Reason's to keep IC Prices high is getting beyond a joke
Posted on Reply
#6
GlacierNine
Isn't it funny that every time the RAM industry sees someone get fined for price fixing, or there's oversupply, or someone gets hit for stealing IP, or basically anything happens that could result in them losing profits or prices falling...

There's always, within a matter of a few months, a sudden influx of TERRIBLE THINGS happening in the memory industry that lead to a shortage or a problem or a SUDDEN NEED to increase prices?

It's almost conspiratorially convenient, almost.
Posted on Reply
#7
ironcerealbox
Read up more on the disagreements first. Secondly, South Korea has few natural resources and they require the import of those resources. The disagreements have always been there but it was nearly always contained within politics.

As far as "asserting the situation", it's really simple - the manufacturers in Korea are either reevaluating where they can get the resources they need or evaluating the possibility of lobbying to their government to appease Japan to get the trade going again. Political differences have never gotten in the way of business even during crises in the history of mankind. Business will resume, someway and somehow.

The insinuation that both countries are doing this to raise profit margins by these means shows a lack of knowledge about the regional politics, business tactics, and history.

*My 2 cents (opinion, off topic):
For a country that has gone through destruction of their land from a proxy war (1950 - 1953) after coming out of Japanese occupation (1910 - 1945), they [Koreans] sure have worked their asses off to be where they are now. It's a shame that Japan's government would inject itself to deter trade due to their perceived slights arising from the disagreements between both countries. Shenanigans like these are used to escalate tensions for the sole purpose of attention (North Korea and their "threats" or perceived "enemies" and Iran come to mind). "Why does the Japanese government need this?" is the real question. To me, this seems really petulant by Japan.
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#8
Ravenmaster
Sounds like the perfect conspiracy to sneakily raise prices again
Posted on Reply
#9
windwhirl
These things make me want to cry in despair.

Oh, well. I guess I'll have to buy memory earlier than expected.
Posted on Reply
#10
AleksandarK
dorsetknob, post: 4075212, member: 8331"
What "Citric Acid" Don't they grow and harvest fruit in Korea.
Its not an Embargoed Commodity its Available on the world market
Please see here
Posted on Reply
#11
dorsetknob
"YOUR RMA REQUEST IS CON-REFUSED"
Sarcasm interposed with Reality yeh i do that sometimes
Still as i said
""Its not an Embargoed Commodity its Available on the world market""
Posted on Reply
#12
z1n0x
*Prices droоооpping*

" NOOOOO! We need a crisis immediately! "

" Floods, power outtages, politics, WW3, asteroids, alliens, black holes, get on it! "
Posted on Reply
#13
stimpy88
Wow, they really doubling down to make sure no nasty lawyer gets wind of their corruption.

We had the "power outage", now we have political arguments, next they are going to need a big fire or natural disaster to really ensure their profits for the next 5 years.
Posted on Reply
#14
TheDeeGee
Prices are dropping.

Japan and South Korea: "Hold my sushi!"
Posted on Reply
#15
yakk
Hmm, new imposed tarrifs should fix this.
Posted on Reply
#16
R-T-B
ixi, post: 4075206, member: 151815"
WD and Toshiba had power outtage and now this . Kinda smells fabricated, but hey, that's just me.
Alexandrus, post: 4075198, member: 158253"
Yeah, sure, "disagreements", right after the memory prices dropped drastically after 2 years of huge prices.
I mean, these are on the books laws you can just google. This time it's no grand conspiracy. Use your head: If it's a written law it's PROBABLY verifiable.


Ravenmaster, post: 4075251, member: 180251"
Sounds like the perfect conspiracy to sneakily raise prices again
Only if you get two countries that historically don't like each other to cooperate on a government level to commit conspiracy.

Yeah, no.

There's been plenty of suspicious shit out of Korean NAND and memory foundries. This isn't one.
Posted on Reply
#17
bug
Conspiracies aside, I wonder how many of the outraged people here ever walked up to their employer with a plan or suggestion to work on razor thin margins.
Posted on Reply
#18
Crackong
Oh, a new trick.

1. Power outage
2. Fire
3. Flooding
4. Contamination
5. Lack of supply due to political struggle.
6. Back to No.1
Posted on Reply
#19
Totally
I don't see a problem just put in a request for export a three months in advance. What is so hard?
Posted on Reply
#21
Tsukiyomi91
this sounds like another one of those "price-fixing" methods to compensate their bottom line. This is why we can't have nice things.
Posted on Reply
#22
Vayra86
R-T-B, post: 4075411, member: 41983"
I mean, these are on the books laws you can just google. This time it's no grand conspiracy. Use your head: If it's a written law it's PROBABLY verifiable.




Only if you get two countries that historically don't like each other to cooperate on a government level to commit conspiracy.

Yeah, no.

There's been plenty of suspicious shit out of Korean NAND and memory foundries. This isn't one.
Basically if someone puts 'memory prices' in a headline its a guarantee now for at least a page full of rant. Never mind its completely unrelated but that needs to happen I suppose?

I posted something the other day about recognizing sources for credibility... here you see how bad it is with general comprehension of all the things.

Scary.
Posted on Reply
#23
stimpy88
Vayra86, post: 4075572, member: 152404"
Basically if someone puts 'memory prices' in a headline its a guarantee now for at least a page full of rant. Never mind its completely unrelated but that needs to happen I suppose?

I posted something the other day about recognizing sources for credibility... here you see how bad it is with general comprehension of all the things.

Scary.
You're so right, no corporation has ever done anything like the things that are being stated in this, or any other memory related thread, let alone done multiple times in the past. People are just so ignorant. Listen people, corporations love money, sure, but would never conspire to make money in an underhanded or dishonest way, that's just not Cricket, and rules are rules, and nice corporations are nice corporations. Where do you people get the idea that there are bad or dishonest corporations? Crazy thinking indeed!

But at least you and I can stand back and laugh at the ignorant crazy stuff people here say, even if we have no money because everything is so expensive. Still, I feel good for being poor, as I have done my bit to help these corporations make their meagre profits. I just can't live with myself when I hear of CEOs not getting their hard earned 7 digit bonuses, think of their poor families... I shiver at the thought... And those government fines they received in the past for doing things made up by the same kind of ignorant thinking, such as displayed in this forum... Just shameful that it resulted in fines! Well, at least we have paid to make up for it by now, and can look down on these negative people.

Shame on all the negative people here, shame on you!
Posted on Reply
#24
Vayra86
stimpy88, post: 4075601, member: 178509"
You're so right, no corporation has ever done anything like the things that are being stated in this, or any other memory related thread, let alone done multiple times in the past. People are just so ignorant. Listen people, corporations love money, sure, but would never conspire to make money in an underhanded or dishonest way, that's just not Cricket, and rules are rules, and nice corporations are nice corporations. Where do you people get the idea that there are bad or dishonest corporations? Crazy thinking indeed!

But at least you and I can stand back and laugh at the ignorant crazy stuff people here say, even if we have no money because everything is so expensive. Still, I feel good for being poor, as I have done my bit to help these corporations make their meagre profits. I just can't live with myself when I hear of CEOs not getting their hard earned 7 digit bonuses, think of their poor families... I shiver at the thought... And those government fines they received in the past for doing things made up by the same kind of ignorant thinking, such as displayed in this forum... Just shameful that it resulted in fines! Well, at least we have paid to make up for it by now, and can look down on these negative people.

Shame on all the negative people here, shame on you!
Eh.. yeah. Did you bother to read the background of this by now? Or just knee jerk responding like the rest? A lot of text but no substance.
Posted on Reply
#25
NC37
R-T-B, post: 4075411, member: 41983"
I mean, these are on the books laws you can just google. This time it's no grand conspiracy. Use your head: If it's a written law it's PROBABLY verifiable.




Only if you get two countries that historically don't like each other to cooperate on a government level to commit conspiracy.

Yeah, no.

There's been plenty of suspicious shit out of Korean NAND and memory foundries. This isn't one.
There are plenty of examples in history of countries who hated each other at one time, cooperating and working together when they had a common interest. The Sauds in the last year suddenly turning to Israel, whom they want to wipe out, for help fighting their proxy war against Iran, lol. Even take a look at all the wars the US gov has fueled by arming radicals to fight a common foe. Like Obama did in the middle east by inciting wars, overthrowing governments, then surprise surprise he suddenly had to fight against the ones he backed to do the overthrowing. And he won a noble peace price...lol

Enemy of my enemy is a powerful motivator. Especially if there is enough reason to do so. Course besides that there are those with more money and power than they should ever have, funneling it into all sorts of conflicts...

It isn't a stretch to think Japan and Korea would work together on a deeper level. Saving face is big in Asian cultures. They often will behave in secret differently than public. Just, until there is a deeper analysis of what is going on, I'd refrain from outright dubbing this more price fixing. Japan thinks it has some leverage and likely more of a reason to suggest it against Korea. However, I don't doubt we'll see a 3rd round of price fixing from the DRAM makers eventually. They've been caught so many times before, they'll do it again. Business ethics and Asia is often two things that rarely go well together. Heck if you look back in Japan's boom era, their companies were known to hire sex workers to come in for the employees and all sorts of shady stuff. Asia always likes to keep a clean public image despite the seedy underbelly that does exist.
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