US warns chip industry about limiting access to Russian raw materials

The US government would warn companies in the chip industry that they should look for suppliers of raw materials outside of Russia and Ukraine. The countries have significant market share in some raw materials for the semiconductor industry.

The White House is said to have issued the warning because of the risk that Russia would restrict access to important materials if the US imposes sanctions against the country. Reuters learned that from sources familiar with the warnings. The chip industry should become less dependent on raw material suppliers from Russia and Ukraine to limit the consequences of a possible conflict. The US and Europe threaten sanctions if Russia invades neighboring Ukraine.

A US government spokesman replied in broad terms that “other sources of key products are available and the government is standing by to identify those with companies and diversify supplies.”

Research firm Techcet reported in early February that Russia is responsible for 33 percent of global deliveries of the transition metal palladium. Palladium is used for sensors and in mram, among other things. The country is also an important supplier of C4F6, which is used for lithography processes. Furthermore, both Ukraine and Russia would be important for the supply of neon, which is used for lasers and is therefore also important for the lithography process of chip production. Also, the Techcet report lists the soft metal scandium and the gas helium as important raw materials whose supplies are at risk.