Tensions between Japan and South Korea come as the U.S. and its trading partners are embroiled in a global trade war.
He added that Japanese and South Korean companies have spent years building up "intricate" supply chains, and it'll be "so hard to redo" such arrangements when trust among all those involved has been breached.Baig is not the only one who has warned about a potential disruption to the technology supply chain.
Jesper Koll, senior advisor at WisdomTree Investments, told CNBC last week that the total value of products affected by Japan's curbs is less than $450 million. He predicted that if Tokyo implements further restrictions, "people will scramble but the overall damage is going to be teeny."companies could potentially step in to fill any shortfall in the supply of tech parts, said Stangarone.
"At a time when the United States has raised concerns around China-based technology companies, the Japan-Korea dispute creates space in the market for state-backed firms to establish themselves as potential players," he told CNBC in an email.
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