5331 private links
Russia’s invasion of Ukraine threatens to pile further pressure on chip manufacturing as a squeeze on the supply of rare gases critical to the production process adds to pandemic-related disruptions.
Ukraine supplies about 50 percent of the world’s neon gas, analysts have said, a byproduct of Russia’s steel industry that is purified in the former Soviet republic and is indispensable in chip production. //
When Russia invaded Crimea in 2014, neon prices shot up by at least 600 percent. Companies have said they can tap into reserves, but the rush to find suppliers that are not in eastern Europe is causing shortages and price hikes, not only of neon but also other industrial gases such as xenon and krypton.
Forty percent of the global supply of krypton comes from Ukraine. The price of the gas, which is used in semiconductor production, rose from ¥200-300 ($1.73-2.59) per liter to nearly ¥1,000 ($8.64) per liter by the end of January, according to Date. //
Gas mixtures that include neon are used to power lasers for etching patterns into semiconductors. Shifting away from Ukraine is difficult because it has to be refined to a 99.99 percent purity, a complex process that only a few companies around the world can do — including some based in the Ukrainian port of Odessa.