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Flash Drive Prices Are Going Up – Cause: Japan & S. Korea Trade War

Japan has been a long time supplier for three key elements used in the manufacturing of NAND memory and semiconductors. Because of recent trade war issues between Japan and South Korea, these elements are getting very hard to obtain.

Japan produces about 90% of the world’s supply of flurinated polyimide and resists, and about 70% of the world’s supply for hydrogen fluoride. This puts everyone at risk if Japan will not supply those demanding it.

Those chemicals are used by Korean manufacturers to produce semiconductors, and are crucial for making components — including memory chips, microprocessors and integrated circuits.

We have seen the direct impact already. For the first time in over eight months, the price of NAND memory for flash drives have gone up. For each GB capacity the percentage increase is different, but most notably are the 32GB and 64GB wafers. They have jumped nearly 25% from the previous week ( this article was posted on July 25th).

Japan has sited inadequate management of those chemicals by purchasing countries. Said another way, these chemicals can also be used to manufacturer military weapons and Japan is claiming those supplies have been diverted to do just that. Japan’s response; restrictions on the chemicals.

Who will lose from this trade war? None other than any person who uses technology. Cell phones, processors, flash memory, circuit boards, the list goes on.

For a more dry version of this report, and our source visit: here

To learn more about the polyimide chemicals a quick read on this wiki page is fairly interesting. Continue Reading

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