Neon supply disruption from war in Ukraine threatens semiconductor industry
Chip production could slow down again as a result of the ongoing war in Ukraine.
Russia’s invasion of Ukraine has had a massive political and humane impact over the past month. It’s also created new obstacles for global economies, including the US. One of the ongoing stories in that space over the past couple of years has been the semiconductor shortage, which has been exacerbated by complications surrounding the pandemic. Now, the war in Ukraine may introduce new problems that will limit chip production.
We first learned from CNBC that Russia’s invasion of Ukraine could also mean bad news for the semiconductor industry. Ukraine is a major producer of neon, a gas used in lithography, the chip-production process. According to the report, more than half of the world’s neon is produced by Ukrainian companies. This includes Iceblick, Ingas, and Cryoin, with the latter two having closed their business operations earlier this month.
The COVID-19 pandemic first stirred up major problems for the semiconductor industry back in 2020, and its effects are still being felt today. It’s caused issues for the production of electronics such as the Xbox Series X/S and PS5, as well as GPUs, and even Tesla vehicles. Although there had been some signs of improvement in recent months, the drop in neon supply could mean more shortages are on the way.
A lack of neon supply as a result of the war in Ukraine will likely cause more woes for the semiconductor industry. However, it’s important to keep in mind the human cost of the events taking place in Eastern Europe right now. If you’re looking for places to donate in order to support those fleeing the violence in Ukraine, Shacknews has a round-up of organizations to consider.
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replyDonovan Erskine posted a new article, Neon supply disruption from war in Ukraine threatens semiconductor industry
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