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.