In the wake of Russia’s invasion of Ukraine, experts are concerned the conflict could significantly impact the semiconductor supply chain.
Semiconductor manufacturers have been struggling to keep up with demand since the outset of the pandemic. Early lockdowns and quarantines impacted supply, while people working from home and avoiding public activities drove up demand.
According to VentureBeat, research firm Techcet attributes Ukraine with supplying 90% of the neon gas used in the lasers the US semiconductor industry relies on to manufacture chips. Further complicating the issue, Russia supplies 35% of the palladium for US chipmakers.
CNBC is reporting that Ukrainian President Volodymyr Zelenskyy says Russian troops have been stopped “in most directions,” as of early Friday morning. It’s unclear if the situation will stabilize, or if it will continue to deteriorate.
One thing is certain: The longer the conflict goes on, the more likely the semiconductor supply chain will fall further behind.