A Japanese media outlet has reported that Japanese firms are showing dissatisfaction over their government's recent decision to curb exports of high-tech materials to South Korea.

According to the Asahi Shimbun on Wednesday, Japan's largest electronics manufacturer, Sony, expressed concerns about production and supply interruptions with its South Korean business partners.

Asahi reported that Tokyo’s export controls are likely to backfire on Japanese firms considering South Korea’s significant standing in the global semiconductor market. 

The report also quoted a semiconductor equipment manufacturer concerned that it will take a hit if South Korean chip makers cut back on equipment investment.

Japan on Monday announced it would tighten export regulations of high-tech components used in a range of goods, including semiconductors and smartphones, produced by South Korea’s tech sector.

The move is seen by many as retaliation against South Korean Supreme Court rulings ordering Japanese firms to compensate colonial-era victims of forced labor.

Analysts say the export controls will disrupt business and supply chains around the world, particularly in South Korea and Japan, which have advanced technology sectors that trade considerably with one another.