Ukraine Conflict Could Nip Critical Neon Supplies for Microchip Makers

Researched by Industrial Info Resources (Sugar Land, Texas)--As if semiconductor manufacturers don't have enough to worry about, a slew of news reports have raised warnings of a potential neon gas shortage as a result of the Russia-Ukraine conflict.

Neon is a critical item when it comes to the making of semiconductors, and Ukraine is home to at least half the world's supply.

Neon gas is used in lasers that etch circuit patterns on computer chips.

According to a February 1 statement issued by TECHCET (San Diego, California), a semiconductor market research firm, the U.S.' neon supply is almost entirely from Ukraine and Russia. Russia produces neon, a byproduct of steel manufacturing. This neon is then sourced and purified by a specialized Ukrainian company.

"If the conflict escalates, and/or if the U.S. imposes more sanctions on Russia, could Russia retaliate by withholding critical materials needed for U.S. chip production," TECHCET asked, which followed with a definite "yes."

When Russia annexed Crimea in 2014, prices for neon gas spiked 600%, according to WIRED.

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