The Russian-Ukrainian war has forced major suppliers in Ukraine, the world‘s largest supplier of neon, to suspend operations, exacerbating the world‘s semiconductor chip supply shortage. (Image source: Adobe Stock)
[See China March 12, 2022 News](See Chinese reporter Wen Tianqing compiled)Russian-Ukrainian WarThe negative impact of the outbreak has hit the economy, as the globalneon（Neon) a major supplier, major suppliers in Ukraine were forced to suspend business, and Russia was subject to severe sanctions, which will exacerbate the globalsemiconductor chipSupply shortage problem.
According to Reuters, as there is still no sign of a truce in the Russian-Ukrainian war, Ingas and Cryoin, the two largest suppliers of neon in Ukraine, were forced to suspend operations, adding to the difficulties for the world‘s chip supply chain. The two companies supply about 45% to 54% of the world‘s major light source materials for semiconductors, and customers include Taiwan Semiconductor companies.
In an interview with the news outlet, Ingas Chief Commercial Officer (CCO) Nikolay Avdzhy said that before Russia invaded Ukraine, the company sent monthly payments to Taiwan, South Korea, China, the United States and Germany. Customers provide 15,000 cubic meters to 20,000 cubic meters of neon (Neon), of which about 75% is used in semiconductor chip manufacturing.
Ingas is based in Mariupol, the second largest city in eastern Ukraine’s Donnetsk region, which is currently surrounded by Russian troops.
Cryoin produces about 10,000 to 15,000 cubic meters of neon per month, said Larissa Bondarenko, director of business development at Cryoin, which is based in the Black Sea port of Odessa, Ukraine’s third-largest city. (Neon), the company ceased operations on February 24.
Bondarenko said the company would not be able to fulfill its March order of 13,000 cubic meters of neon (Neon) unless the war stopped. With the Neon production plant closed, Cryoin can survive at least three months. It is uncertain whether the company will be able to obtain additional raw materials to produce Neon.
The COVID-19 epidemic has caused the global chip supply to be in short supply, especially during this period, the demand for mobile phones, laptops and electric vehicles has generally increased in various countries. Techcet’s assessment and analysis believe that in 2021, the global consumption of neon gas (Neon) for chip production will reach about 540 tons.
In addition to Neon, Ukrainian companies such as Ingas and Cryoin also produce rare gases such as krypton and xenon. In mid-February, TrendForce released a report saying that Ukraine provides nearly 70% of the world‘s Neon production. Tianfeng Securities released a report on March 8 that Ukraine’s global krypton market share is 40%, and xenon is 30%.
Taiwan Central News Agency reported that after the outbreak of the Russian-Ukrainian war, the global supply of rare gases and chemical materials such as Neon, a raw material for chip manufacturing, has become the focus of the semiconductor industry. The price of rare gas has skyrocketed, which is related to the supply of high-purity rare gas needed by the United States. The rise in the price of other chemicals and materials may also drive up the cost of chip production.
The report quoted Techcet in a report released on February 1 saying that the Russian-Ukrainian war will seriously impact the supply chain of key semiconductor raw materials. Russia is a major producer of neon (Neon), hexafluorobutadiene (C4F6), and palladium (Palladium). Among them, neon, a by-product of Russian steel manufacturing, is shipped to Ukraine for industrial-grade purification.
According to European and American media reports, the prices of key rare gases required for semiconductors, including Neon, xenon and krypton, are skyrocketing, and neither inventory nor supply can meet current demand.
Responsible editor: Xin He Source: look at China
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