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Because of the war in Ukraine, the world may be left without neon chips

Ukrainian companies from Odessa and Mariupol, which supplied partners with up to 35 tons of neon per year, have suspended their activities.< /strong>

The Russian military invasion of Ukraine caused the suspension of the activities of the Ukrainian companies Ingas and Cryoin, which were engaged in the supply of semiconductor-grade neon, a key ingredient for making chips, reports the Chronicle.info with reference to Focus.

Reuters estimates that between 45% and 54% of the world's neon needed for lasers used to make microcircuits will be unavailable.

The research company Techcet said that last year the production of chips took about 540 tons of neon. Ukrainian companies Ingas and Cryoin, which are located in Mariupol and Odessa, supplied their partners from the USA, Germany and the Asian region from 25 to 35 tons of inert gas. Both firms went out of business as Russian forces stepped up attacks on cities across Ukraine, destroying key infrastructure, according to company representatives contacted by Reuters.

The supply halt will reduce global chip production, which is already in crisis after the coronavirus pandemic boosted demand for mobile phones, laptops and then cars, forcing some companies to cut production. A worsening of the global semiconductor shortage could occur even with stocks of neon held by manufacturers.

Techcet believes that smaller chip makers will suffer more in such circumstances. Large companies such as Intel, Samsung and TSMC have inventories of raw materials that can last two or more months of operation. However, many manufacturers do not have such capabilities, which will exacerbate the problem with the supply of components, according to Techcet.

The same forecasts are given by specialists from the analytical company CFRA. According to company spokesman Angelo Zino, serious problems for chipmakers may arise in May 2022.

«If stocks are exhausted by April, and chipmakers do not have orders in other regions of the world, this , will likely mean further restrictions in the supply chain and the inability to produce the final product for many key customers», he said.

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