Samsung, SK Hynix ask Korean firm to boost chemicals supply amid Japanese curbs

FOOSUNG

16/07/2019 10:51

By Heekyong Yang and Ju-min Park
    SEOUL, July 16 (Reuters) - South Korea's Samsung Electronics
 005930.KS  and SK Hynix  000660.KS  have asked a local supplier
to the boost supply of a key chipmaking chemical to guard
against any production disruptions, an official at the supplier
said on Tuesday.
    The move by the two chipmakers to secure supplies of
hydrogen fluoride comes after Japan said earlier this month that
it would tighten curbs on exports of high-tech materials used in
smartphone displays and chips to South Korea, threatening to
disrupt the global supply of microchips consumed by the likes of
Apple Inc  AAPL.O  and Huawei Technologies Co.
    "They are checking almost every day to secure more supplies
from us," said the official at Foosung Co  093370.KS  which
provides hydrogen fluoride to the two chip giants, adding that
the chipmakers offered to run the quality tests for its product.
    The official declined to be named due to the sensitivity of
the matter.
    Samsung and SK Hynix declined to comment whether such
requests were made.
    South Korean chipmakers rely on Japan for most of the
materials affected by the export curbs, although they source
some hydrogen fluoride from China and South Korea.
    Stockpiling is not regarded as a viable option for hydrogen
fluoride as it is highly toxic.
    Foosung is currently a supplier to Samsung and SK Hynix. 
    South Korean media Yonhap Infomax reported earlier on
Tuesday that the two firms have requested local suppliers to
boost their shipment of hydrogen fluoride to reduce their
reliance on Japanese imports.
    A SK Hynix official said the company was running a test of
some South Korean hydrogen fluoride materials, but did not
provide further details.
    The company said its President Don Kim flew to Japan on
Tuesday to discuss the export controls with its Japanese
suppliers.

 (Reporting by Heekyong Yang and Ju-min Park; Editing by
Muralikumar Anantharaman)
 ((ju-min.park@thomsonreuters.com; +82 2 3704 5650; Reuters
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