War in Ukraine could worsen the chip shortage

A few days ago, we reported that the ongoing invasion of Ukraine by Russia would presumably not lead to a worsening of the chip shortage, which has already plagued the past two years due to the COVID pandemic. 19, at least according to major manufacturers and the Semiconductor Industry Association. However, it seems that this danger has not completely escaped, given that some indispensable raw materials in the production phase come from Ukraine.



credit: pexels.com In fact, 70% of the world supply of neon, an element used in the lasers of machinery used in semiconductor production, comes from Ukraine, not to mention the fact that neon gas is a by-product of the Russian steel industry, which is subsequently processed in Ukraine and sent to the rest of the world. In addition to neon, other elements such as argo, crypto and xenon may be less readily available on the market resulting in problems for major US chip makers.


The possible problems in the production of chips derive not only from Ukraine, but also from Russia itself, currently subject to very heavy sanctions, which supplies about a third of palladium worldwide, a fundamental element both for the creation semiconductors and catalytic converters, as well as aluminum, nickel and cast iron.



credit: pexels.com