The chief executive of Samsung Display warned Thursday that the war involving Iran and the resulting surge in global oil prices could sharply increase the cost of energy and raw materials used in electronics manufacturing, reports Reuters.
Chung Yi, president and CEO of Samsung Display, said rapidly rising oil prices are adding to the technology industry’s challenges at a time when companies are already struggling with soaring semiconductor prices that are pushing up the cost of smartphones, personal computers and other electronic devices.
“When oil prices rise, the prices of these raw materials will also rise,” Chung told Reuters.
He explained that many key components used in display manufacturing, including specialized films and related materials, are derived from crude oil.
“When this becomes a reality, I expect the cost burden to become significantly greater,” he said.
Samsung Display, a subsidiary of Samsung Electronics, produces flat-panel screens used in products made by major technology companies, including Apple’s iPhones and MacBooks as well as smartphones manufactured by Samsung Electronics itself.
The warning highlights growing concerns across the global technology supply chain that geopolitical tensions and energy market disruptions could further increase production costs for consumer electronics.
Bd-pratidin English/ Jisan
