Semiconductor industry faces complications:
March 2022
Faced with the devastating reality of war, Ukraine’s neon industry halted production. One of Ukraine’s two primary neon companies, Ingas, is based in Mariupol, which has been repeatedly bombed by Russian forces and is currently under siege. The other company, Cryoin, is based in Odesa, where citizens are currently preparing for an assault. And amid terrifying conditions and a mounting number of civilian casualties, the safety of the people who work at these firms is the priority, not the potential impact on tech manufacturers. (Both plants closed now and together they supply 50% of the world's Neon gas supply).
There will be ripple effects, though. Semiconductor manufacturers rely on neon to control the specialized lasers they use to make computer chips. Right now, it’s not clear whether they have enough time to find and develop new sources of this gas before their backup supplies run out: Chip companies and industry analysts say there’s anywhere between one to six months worth of neon in reserve. If that runs out, these companies won’t be able to make semiconductors. This means that the worldwide chip shortage — which was expected to end sometime in the next year or so — could draw out even longer, leading to higher prices, delivery delays, and shortages of critical technology.
6 months is up and both factories in Ukraine remain closed.
The only USA plant in Texas has alotted 230 million for the expansion of their Neon Gas business but it won't be ready tomorrow unfortunately.
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