Chip production due to Ukraine invasion
Source: Gizchina
Russia’s brutal invasion of Ukraine not only created a disaster of loss of life and widespread destruction in the country; it also has a direct impact on financial markets, grain supplies, gasoline prices and various industries where Ukraine and Russia are important players. One such industry is neon gas, which is used in semiconductor manufacturing: Two Ukrainian suppliers – which account for about half of global chip-grade neon gas production – have been forced to shut down. This can lead to semiconductor shortages and drive up prices.
The data show that Ingas and Cryoin, Ukraine’s two major neon gas suppliers, supply between 45% and 54% of the world’s semiconductor neon gas. Both companies had to be shut down due to the destruction of critical infrastructure by the Russian invaders. Before the war began on February 24, Ingas was producing between 530,000 and 700,000 cubic feet of neon gas per month for customers in China, Taiwan, South Korea, Germany and the US. Cryoin is producing about 350,000 to 530,000 cubic feet.
Chip production has been hit hard by the global supply chain disrupted by the coronavirus pandemic, with many tech companies, including camera manufacturers, notice of product delay. These latest developments will likely exacerbate the problem, as it could make it difficult for other neon gas suppliers to ramp up production.
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