Russia-Ukraine Conflict Could Affect Semiconductor Gas Supply Long-Term
TAIWAN—An escalated or prolonged conflict between Russia and Ukraine could negatively impact Ukraine's long-term ability to supply the raw material gases neon, argon, krypton, and xenon needed for semiconductor production, according to researchers at TrendForce. Ukraine supplies nearly 70 percent of the world’s neon gas capacity.
TrendForce notes that gas production line interruptions in Ukraine will not halt semiconductor production lines in the short term. However, the reduction in gas supply will likely lead to higher prices which may increase the cost of wafer production.