Russia's invasion of Ukraine could exacerbate chip shortages, as it supplies more than 90% of the semiconductor-grade neon that is essential for chip-making lasers.
As Russia's invasion of Ukraine continues, attention is focused on the 'neon' supplied by Ukraine. Ukrainian neon accounts for more than 90% of the semiconductor grade products used in the United States, and it is reported that the recent semiconductor shortage may be further prolonged.
Companies shut Ukraine operations and brace for sanctions on Russia | Reuters
Russian invasion of Ukraine to further strain US chip supply
Techcet, a market research firm specializing in raw materials and components in key supply chains, newly reported that 'the shortage of Ukrainian neon could hurt the semiconductor industry.' According to Techcet, neon is indispensable for the technology ' semiconductor lithography ' that transfers the circuit pattern drawn on the original plate to the silicon wafer side via the exposure device, and more than 90% of the neon for semiconductor lithography in the United States is from Ukraine. That's right.
In addition, Ukrainian neon is a refinement of neon produced as a by-product of Russian steel manufacturing, and it is said that the two countries involved in this invasion of Ukraine are greatly involved. In fact, it has been confirmed that the price of neon has increased seven times during the 2014 Crimean crisis .
According to the German government's white paper on the noble gas industry, the reason why Ukraine produces so much neon that it is called oversupply is that in the 1980s the Soviet Union developed laser weapons for missile defense and satellite defense. The reason is that he made a large investment in the industry.
Techcet's president and CEO, Lita Shon-Roy, said, 'It will hurt chip makers in the automotive industry,' specifically as to which industries will be hit particularly hard. He said the auto industry, which had been hit by the lack of chips in the Corona sword, would be in further trouble.
However, according to Shon-Roy, most chip makers have long-term contracts, so there will be no price increase over the short term. Regarding this, Shon-Roy said, 'You will not feel the price increase for half a year, if not one year. If you do feel the price increase, it is from the automobile market first.'
In response to this situation, a senior White House official commented, 'We are working with the supply chain in case Russia takes actions that interfere with the semiconductor supply chain.' Semiconductor giants Micron, SK Hainick, and Intel each responded that 'the impact is limited.'
Semiconductor giants expect limited supply network disruption due to invasion of Ukraine | Reuters
in Hardware, Posted by darkhorse_log