Russia - Ukraine war: Brace for chip shortage, warns Moody's Analytics

During the 2014-2015 war in Ukraine, neon prices went up by several times over, indicating how serious this can be for the semiconductor industry

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Puneet Wadhwa New Delhi
The ongoing geopolitical tussle between Russia and Ukraine is likely to have another casualty – the semiconductor chip. Palladium and neon are two resources that are key to the production of semiconductor chips. 

Given that Russia supplies over 40 per cent of the world’s supply of palladium and Ukraine produces 70 per cent of the global supply of neon, we can expect the global chip shortage to worsen should the military conflict persist, Tim Uy, of Moody's Analytics wrote in a recent report.

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First Published: Mar 04 2022 | 10:11 AM IST

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