Chip shortage to worsen due to Russia and Ukraine War


The conflict between Russia and Ukraine is likely to worsen the shortage of chips in the world market . Russia and Ukraine are key suppliers of raw materials used in the manufacturing of chips .

  • Ukraine is a major producer of semiconductor-grade neon gas critical for lasers used in chip making and supplies more than 70% of  world needs.

  • Russia supplies  44% of the rare metal Palladium used in the production of chips in the world .

  • The United States sources 90% of its neon gas supply from Ukraine and sources around 35% of its palladium from Russia . 

  • The world is already facing a shortage of chip supply due to disruption in the supply chain due to the corona pandemic and surge in demand for computers,laptops, mobile phones etc.

  • Chip is used in computers ,cars spacecraft.consumer electronics etc. 

  • The chip market in the world is controlled  mainly by China,Taiwan and South Korea ,Singapore, and Malaysia .

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