Samsung asks suppliers to stock up on Japanese materials

Samsung Electronics has officially requested its suppliers for SET products such as home appliances and smartphones to secure an inventory of Japanese materials and components, according to industry sources on July 18.

The costs will be all shouldered by Samsung, said the formal letter recently sent out to the manufacturers.

Market watchers said the move is a part of the world’s largest tech company’s contingency plans against a prolonged trade war between South Korea and Japan.

the letter, Samsung Electronics requested the suppliers to stock up on at least 90 days’ worth of parts and materials by August 15 at the latest. Samsung will shoulder all incurred and future costs, it added.

“The Japanese government’s export restrictions on semiconductor materials may be widened,” said the letter, indicating there are concerns of a widening ban.

On July 13, Samsung Electronics Vice Chairman Lee Jae-yong shared the results of his recent trip to Japan with key executives including Vice Chairman Kim Ki-nam, the memory division head Jin Kyo-young, System LSI head Kang In-yeop and Samsung Display CEO Lee Dong-hoon.

The executives discussed the current supply and demand for chips and displays, and also how to cope in future situations.

The Samsung heir also warned for each business division to install various coping mechanisms and strategies for worst case scenarios.