Semiconductor Industry Dismisses Concerns That Russia's Airstrikes on Ukraine Will Worsen Supply Shortages

[Asia Economy Reporter Jeong Hyunjin] As the United States announced export control sanctions against Russia, which invaded Ukraine, including semiconductors among the targeted items, the U.S. semiconductor industry dismissed concerns that the existing semiconductor supply shortage would worsen.

According to Bloomberg on the 24th (local time), John Neuffer, president of the U.S. Semiconductor Industry Association (SIA), said, "While the new sanctions could have a significant impact on Russia, Russia accounts for less than 0.1% of global semiconductor purchases and is not an important direct customer for the semiconductor industry."

Regarding concerns about potential production disruptions due to some materials used in semiconductor manufacturing being supplied from Russia and Ukraine, he rebutted, "The semiconductor industry has diversified its sources for key materials and gases, so we do not expect immediate supply chain concerns related to Russia and Ukraine."

Some have pointed out that more than 90% of the neon gas used in U.S. semiconductor production is produced in Ukraine, and 35% of the world's palladium used in semiconductor manufacturing comes from Russia, diagnosing that Russia's invasion of Ukraine could have a significant impact on the semiconductor industry. Bloomberg reported, "Amid the pandemic and unprecedented demand growth, which have reduced flexibility in the semiconductor industry, semiconductor manufacturers reassured the market with messages that the 'Ukraine crisis will not worsen the shortage.'"

Not only SIA but also leading U.S. semiconductor companies like Intel stated, "We expect no impact on our supply chain," adding, "With diverse and global supply chains, risks from potential regional issues will be minimized." U.S. GlobalFoundries also said, "We do not expect direct risks," noting that they have secured resources outside Russia and Ukraine to maintain material flexibility.

This content was produced with the assistance of AI translation services.