Abstract
The chip shortage will potentially be with us for a good while longer. The invasion of Ukraine has again drawn attention to global semiconductor shortages. The country is largest supplier of the high-grade neon used in lasers for chipmaking. Its two main companies are believed to have closed their factories: Ingas in Mariupol and Cryoin Engineering in Odesa. There are conflicting reports as to how quickly neon shortages could become another headache for fab operators. Peter Hanbury, a partner with consultancy Bain, says fabs had already been looking for greater stability of supply, not just in the months before the latest Russian invasion, but dating back to its 2014 seizure of Crimea and parts of Donbas. Steps taken include second-sourcing, deeper inventories and, from equipment makers, innovation to reduce the amount of neon their tools use. Nevertheless, a prolonged conflict could see issues arise later this year.
Published Version
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