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Samsung Galaxy Note 10 Production Hit By Trade Dispute (Report)

(Image credit: Tom's Guide)

Samsung is having some problems manufacturing its Galaxy Note 10 following a row between South Korea and Japan, according to a new report.

In a report on Monday (July 15), Korean broadcast JTBC said that Samsung has been forced to cut production levels on its Exynos processor by 10 percent.  The outlet also added that the chip, which would be finding its way to a version of the Galaxy Note 10, will not be in the kind of supply that Samsung needs to produce as many Galaxy Note 10 units as it hopes.

The problem centers on a trade dispute between South Korea and Japan. 

Earlier this month, a South Korea court ruled that Japan should pay individuals who lived in South Korea during Japanese occupation between 1910 and 1945 and were forced into forced labor. Japan argued that the issue has been resolved and shouldn't be forced to pay anyone for occupation.

In response, Japan slapped South Korea with economic sanctions on the materials Korean companies use to produce semiconductors and mobile displays. According to SamMobile, which earlier reported on the dispute, 90 percent of Korea's imports on those materials come from Japan.

Now, the issue is impacting one of Korea's most important companies at a critical time as it prepares to launch the Galaxy Note 10. That said, Samsung didn't comment on the report to JTBC and it's unclear whether the cut in production will have a material impact on Samsung's Galaxy Note 10 production.

Since it's only related to the Exynos processor, however, it shouldn't impact U.S. customers. In the U.S., Samsung bundles the Qualcomm Snapdragon chip in its flagship devices and is expected to do the same with the Snapdragon 855 it'll bake into the Galaxy Note 10. 

Aside from that Snapdragon 855, Samsung is also expected to deliver big screens and a 5G model it'll call the Galaxy Note 10+. The device might also offer a Sound on Display feature that ditches the earpiece and replaces it with sound vibrating off the screen.

We'll know for sure what Samsung has planned on Aug. 7, when the company holds a special press conference unveiling the device. Until then, look for more rumors to surface.

Don Reisinger is a communications strategist, consultant, and copywriter who has also written for many leading technology and business publications including CNET, Fortune Magazine and The New York Times, as well as Tom's Guide.