Chipmakers don’t expect war in Ukraine to lead to additional shortages

Chip machine maker ASML and chip makers like Intel and GlobalFoundries say the war in Ukraine is unlikely to mean chip shortages will increase further. Ukraine is a major supplier of neon, but the companies say they have other sources as well.

The Semiconductor Industry Association says the semiconductor industry has “diverse suppliers” of critical materials and gases, so the war in Ukraine does not “immediately” mean supply problems will arise.

The trade association also discusses the sanctions announced by the US and Europe against Russia, which should, for example, make it more difficult for Russians to buy tech products. The impact of these sanctions could be significant, “but Russia is not a major consumer of semiconductors.” Less than 0.1 percent of all chips purchased worldwide would go to Russia, according to figures from the World Semiconductor Trade Statistics. Based on data from IDC, the association also says that in 2021 the Russian IT market was worth $50.3 billion of the $4.47 trillion the market is worth worldwide.

Intel and GlobalFoundries, manufacturer of AMD chips, among others, make similar statements, according to Bloomberg. For example, Intel says it does not anticipate supply chain impacts and has a diverse, global supply chain. As a result, ‘potential, local disturbances’ would have little impact. GlobalFoundries expects “not immediately” to be at risk and also points to the company’s global supply chain.

Before Russia invaded Ukraine Thursday morning, ASML said it was looking at “alternative sources” for “the limited amount” of neon the company uses. Neon is used by chip companies in the production of chips and chip machines for gas-phase lasers. Ukraine is the world’s largest neon supplier. ASML said Wednesday it gets less than 20 percent of its neon from Ukraine and Russia.