Invasion of Ukraine Could Heighten Strain on Semiconductor Supply

Researched by Industrial Info Resources (Sugar Land, Texas)--The global semiconductor chip shortage has continued to adversely affect production of many consumer products in the automotive, personal computer and other markets.

Chip makers are working to alleviate the shortage, but now face another problem, according to CNBC.com. With Russia's invasion of Ukraine, there could be a threat to supplies of neon gas and palladium needed for semiconductor chips, as Russia and Ukraine are critical sources of these materials.

The U.S. neon supply comes almost entirely from these two countries. The gas is used in lithography processes for chip production. Russia also supplies 33% of the global supply of palladium, which also is used in the production of automotive catalytic converters.

If Russia continues its invasion of Ukraine, world governments could impose economic sanctions which may affect the supply of these materials among other possibilities.

Industrial Info is tracking 56 U.S.-based semiconductor projects, valued at $136.93 billion, that started since January 2021 and were meant in large part to combat the shortage. If the Russian/Ukraine crisis persists, these projects may suffer additional adverse impacts.

Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Project Database can click here for a list of detailed project reports.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.