South Korea asked the US to step in to help resolve a bitter diplomatic row with Japan which threatens to severely hamper chip and smartphone manufacture, China Daily reported.

Japan and Korea are embroiled in a spat which has so far resulted in the former announcing it would limit exports of three chemicals used by some of Korea’s most prominent technology companies.

In response, Korea unveiled a massive investment plan to produce its own materials and limit imports. Politicians have also called for a budget of KRW300 billion ($255 million) to be set aside to help companies deal with the current crisis.

Korea’s foreign minister reportedly discussed the issue with the US Secretary of State in a bid to ease tensions. The US apparently agreed to help facilitate a conversation between the two countries.

Separate reports from Yonhap News Agency today (12 July) added a senior official from the country’s foreign office was in Tokyo, engaged in talks to try and diffuse the row and remove trade restrictions.

Among the goods impacted by Japan’s order are specialist materials used in the production of chips and smartphone displays, which are vital in many of the electronics produced in Korea.