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Chip manufacturers: the situation in Ukraine will not increase the shortage of semiconductors

According to representatives of the world’s major chip manufacturers, as well as according to the Semiconductor Industry Association (SIA), manufacturing in Ukraine will cause serious local problems, but is unlikely to exacerbate the current global chip shortage or cause interruptions in supply chains. New sanctions against Russia also will not have a serious impact on the industry on a global scale, experts say.

Ukraine is a major supplier of neon to many semiconductor companies such as ASML and Micron, but supply disruptions can only cause limited problems – the country is not the only seller of this gas, and, in addition, manufacturers usually have stocks of components.

According to the representative of Intel and GlobalFoundries, supply disruptions are not expected. They do not predict a serious shortage of neon, alternative suppliers are ready to make up for the shortage. A similar opinion regarding the supply of raw materials is shared by the Semiconductor Industry Association.

On Thursday, the US and UK pledged to stop and ban the export of all dual-use technology to Russia, from simple chips to jet engines. SIA believes that Russia acquires a small number of chips on a global scale, so its actual withdrawal from their market will not have a significant impact on the semiconductor industry – according to World Semiconductor Trade Statistics (WSTS), the country acquires 0.1% of the total volume produced in the world chips. Nevertheless, for Russia itself, such a “blockade” is likely to have a tangible value.

Although Russia does not independently produce consumer products such as electronics, computers and modern cars on a global scale, the country is in dire need of solutions for the information systems and telecommunications sector, including server products for financial institutions, and hardware solutions for cloud and infrastructure projects. According to IDC, Russia accounts for 1.12% of the information technology market for a total of $50.3 billion (out of a total of $4.47 trillion).




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