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Microchip Supply Chain in Crisis.

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With the Russia-Ukraine conflict still ongoing, it has now caused a mass shortage in materials required to produce microchips. Neon and Palladium are vital for the semi-conductor industry.

Neon is a by-product of Russian steel manufacturing which is then purified in Ukraine. Neon is used for lasers to make chips, and Ukraine provides 70% of the world’s supply of Neon.

Palladium is used in sensors and memory chips and devices. Russia exports more than 40% of it to the world. It is also used in other applications, examples include cars, microwaves, laptops, and other electronic devices.

During the 2020-21 global pandemic, there was a mass chip shortage due to people working from home. Companies have stockpiled microchips, but unless a deal is brokered soon, there will be a mass shortage for industries who rely on semi-conductors and the impacts will be felt worldwide in the coming months.

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