04-01-2022, 12:01 PM
Quote:Ukraine's two leading suppliers of neon, which produce about half the world's supply of the key ingredient for making chips, have halted their operations as Moscow has sharpened its attack on the country, threatening to raise prices and aggravate the semiconductor shortage. Some 45% to 54% of the world's semiconductor-grade neon, critical for the lasers used to make chips, comes from two Ukrainian companies, Ingas and Cryoin, according to Reuters calculations based on figures from the companies and market research firm Techcet. Global neon consumption for chip production reached about 540 metric tons last year, Techcet estimates.Exclusive: Russia's attack on Ukraine halts half of world's neon output for chips | Reuters
Quote:Taiwanese firms, such as TSMC, already have "safety stocks" of neon standing by, according to the Economy Ministry of Taiwan speaking to Reuters, and so do not anticipate any real impact on the global supply chain. But that's likely only in the short term. Speaking with The Register, Intel has also largely dismissed what it is calling "a potential local interruption." "Intel has assessed the possible impact of the conflict on Intel's supply chain," an Intel spokesperson says. "Intel's strategy of having a diverse, global supply chain minimizes its risk to potential local interruption. However, we are monitoring the situation carefully." Market research firm, Techcet, provided Reuters with much of the data for its report, and its president has estimated that the larger semiconductor manufacturers will likely be able to cover the shortfall for an extended period of time, while smaller companies would bear the brunt of the supply chain disruptions.Major chipmakers could weather neon shortages as result of war in Ukraine for 'two months or more' | PC Gamer