A market research firm points out that the ongoing trade dispute between South Korea and Japan could have serious consequences to the global semiconductor industry if a resolution cannot be identified soon.

According to the U.S. TV outlet CNBC on Monday, the London-based global information provider IHS Markit said that if supply constraints arise in South Korean memory chip production, the price of memory components could significantly increase due to the inability of other memory suppliers to meet global demand. 

The report noted that Japan has restricted exports to South Korea of three chemicals that are used for the production of semiconductors and display screens.

It said that Tokyo’s global dominance of those materials will make it difficult for Seoul to find alternatives when their supplies are disrupted by the curbs, and as a result, Korean tech manufacturers Samsung Electronics and SK Hynix could fail to meet production deadlines.

The report said this is bad news for their customers, which include large tech companies such as Apple and Huawei and that the situation is adding stress on an already slowing world economy.

IHS Markit said that Samsung and Hynix supplied 61 percent of components used in memory chips globally in 2018 and that there may be a contagion effect of the U.S. and China also feeling the pain as both countries rely on supplies from South Korea, 

The firm said a variety of consumer electronics such as mobile handsets and PCs would be impacted and consumers from all over the world may have to pay a higher price for those products.