How Russia-Ukraine war affect for chip manufacturing industry

 Last Thursday(24) Russia invaded Ukraine. This invasion can affect the supply of semiconductor in the worst way.  Russia and Ukraine are major exporters of raw materials used to manufacture several chips. These two countries export semiconductors like Palladium which is used to make memory and senor chips, also Neon gas which is used for etching circuit design. Russian Palladium sources covers 45% of global demand.

We are already facing a global chip shortage. With technological advancement in present millions of products such as cars,smartphones,washing machines,refrigerators etc need chips to work but because of this conflict current situation is getting worse. Experts predict this supply and demand problem will end in 2022 but now at least this will not end in 2023.

The largest chip manufacturing country is Taiwan. But news from Taiwan is positive about the upcoimg raw material shortage. Taiwan's major chip manufacturing company, Asia's most valuable company Taiwan Semiconductor Manufacturing Co (TSMC) said impact from the war will not become problem for their supply chain.

They went on to say, There are three key raw materials for chip manufacturing. They are Neon gas, C4F6 and metal Palladium. Taiwanese chip manufacturers use little amount of Palladium and they do not depend on neither Ukraine nor Russia sources. They already have stocks of Neon gas and C4F6 on the island. They have diversified the supply chain so the impact from war is not big to them. With the invasion price of a crude oil rose rapidly but Taiwan said their energy supplies are secure with oil reserves which will enough for 145 days.

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