World Desk, AnyTV, London
Published by: Harendra Chaudhary
Updated Tue, 08 Mar 2022 07:45 PM IST
Summary
Semiconductors are powered by a microchip. Neon and palladium minerals are used in the production of microchips. Ukraine and Russia are the largest sources of both these minerals. According to the experts of the semiconductor market, the chip cannot be produced without neon. Neon is a by-product produced during steel production in Russia. This by-product is purified in Ukraine…
New obstacles have arisen in the business of the semiconductor industry in the world. The functioning of this industry was severely hampered during the Corona pandemic. Because of that the supply of semiconductors was not yet normalized. It affected many modern industries including automobiles. Now due to the Ukraine crisis, this problem seems to be getting deeper.
Use of Neon and Palladium Minerals
Semiconductors are powered by a microchip. Neon and palladium minerals are used in the production of microchips. Ukraine and Russia are the largest sources of both these minerals. According to the experts of the semiconductor market, the chip cannot be produced without neon. Neon is a by-product produced during steel production in Russia. This by-product is purified in Ukraine. For the time being, both these countries are out of the world supply chain due to war or sanctions. Russia is the largest source of palladium. It is used to make sensors, memory, and other applications.
Analysts have warned that chip supplies around the world could worsen if the Ukraine war prolongs. Market rating agency Moody’s Analytics has said in a recent report that Russia supplies 40 percent of the world’s total need for palladium. Ukraine supplies 70 percent of the world’s neon needs. Tim Yui, analyst at Moody’s Analytics, wrote in one of his reports – ‘The price of neon increased manifold during the 2014-15 war in Ukraine. This indicates how dire the situation may be for the semiconductor industry now. Companies that have been affected by the war meet 70 percent of the demand for neon. Neon is an integral part of the lithographic process of chip making.
Chip shortage will be serious
The world faced chip shortage for the entire period of 2020-21 due to the COVID-19 pandemic. The demand for digital products increased due to the increased trend of lockdown and work from home during the pandemic. Chip is used in all of them. On the one hand the demand for chips increased, on the other hand, the impact of supply chain breakdown affected the chip industry. Now Moody’s Analytics has feared that the chip shortage will take a more serious form. It will have an impact on all those industries which are dependent on semiconductors. Other experts have also said that due to the situation created by Ukraine war, automobile industry, electronics industry, phone makers and many other such sectors will have to face big trouble. All these industries are chip dependent.
Market experts have pointed out that the demand for chips has increased rapidly around the world after the recovery from the corona epidemic. Last month, the Semiconductor Industry Association reported in a report that global sales of the computer chip industry reached a record high of $555.9 billion in 2021. This was an increase of 26.2 per cent as compared to 2020.
Expansion
New obstacles have arisen in the business of the semiconductor industry in the world. The functioning of this industry was severely hampered during the Corona pandemic. Because of that the supply of semiconductors was not yet normalized. It affected many modern industries including automobiles. Now due to the Ukraine crisis, this problem seems to be getting deeper.
Use of Neon and Palladium Minerals
Semiconductors are powered by a microchip. Neon and palladium minerals are used in the production of microchips. Ukraine and Russia are the largest sources of both these minerals. According to the experts of the semiconductor market, the chip cannot be produced without neon. Neon is a by-product produced during steel production in Russia. This by-product is purified in Ukraine. For the time being, both these countries are out of the world supply chain due to war or sanctions. Russia is the largest source of palladium. It is used to make sensors, memory, and other applications.
Analysts have warned that chip supplies around the world could worsen if the Ukraine war prolongs. Market rating agency Moody’s Analytics has said in a recent report that Russia supplies 40 percent of the world’s total need for palladium. Ukraine supplies 70 percent of the world’s neon needs. Tim Yui, analyst at Moody’s Analytics, wrote in one of his reports – ‘The price of neon increased manifold during the 2014-15 war in Ukraine. This indicates how dire the situation may be for the semiconductor industry now. Companies that have been affected by the war meet 70 percent of the demand for neon. Neon is an integral part of the lithographic process of chip making.
Chip shortage will be serious
The world faced chip shortage for the entire period of 2020-21 due to the COVID-19 pandemic. The demand for digital products increased due to the increased trend of lockdown and work from home during the pandemic. Chip is used in all of them. On the one hand the demand for chips increased, on the other hand, the impact of supply chain breakdown affected the chip industry. Now Moody’s Analytics has feared that the chip shortage will take a more serious form. It will have an impact on all those industries which are dependent on semiconductors. Other experts have also said that due to the situation created by Ukraine war, automobile industry, electronics industry, phone makers and many other such sectors will have to face big trouble. All these industries are chip dependent.
Market experts have pointed out that the demand for chips has increased rapidly around the world after the recovery from the corona epidemic. Last month, the Semiconductor Industry Association reported in a report that global sales of the computer chip industry reached a record high of $555.9 billion in 2021. This was an increase of 26.2 per cent as compared to 2020.