According to South Korean media reports, in response to Japan’s export restrictions, Samsung Electronics and SK hynix are looking for new sources of key materials for chip manufacturing.

According to an official, “Korean chipmakers are trying to diversify the supply chain of photoresists and etching gases. Japanese companies control about 90% of the global market for photoresists and etching gases. Photoresists rely entirely on Japanese manufacturers, and it is almost impossible to find other photoresist supply chains, but for etching gases, some other companies in Belgium and South Korea can replace Japanese companies, especially Korean companies like Soulbrain and Ram Technology.”

However, Lee Jong-hwan, a professor of semiconductor engineering at Sangmyung University, said that because chip makers are highly dependent on Japanese materials companies, it is difficult for Samsung and SK Hynix to diversify their supply chains.