Ukraine Conflict Halts Half of Global Chip-Grade Neon Supply
Russia's invasion of Ukraine forces two major companies to stop production, cutting off half the world's semiconductor-grade neon. This disruption threatens to worsen the ongoing global chip shortage.
Russia's invasion of Ukraine forces two major companies to halt operations, cutting off about half of the global supply of semiconductor-grade neon. This critical gas powers the lasers used to manufacture microchips, and the sudden stoppage threatens to drive up prices and worsen the ongoing global chip shortage.
The two Ukrainian firms, Ingas and Cryoin, produce between 45% and 54% of the world's neon specifically for the semiconductor industry. With both companies shutting down due to the escalating conflict and the destruction of key infrastructure, the worldwide output of chips faces a new significant hurdle.
Analysts warn that if the war drags on and depletes existing chipmaker stockpiles by April, the broader technology supply chain faces further severe constraints. This loss of neon production compounds existing availability issues that already force electronics and automakers to scale back manufacturing.