Russia's Invasion of Ukraine... Worsening Concerns Over Semiconductor Supply Shortages

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Concerns are growing that the semiconductor supply crisis will worsen as the supply of rare resources essential for semiconductor production, such as neon, is disrupted due to Russia's invasion of Ukraine.

Japanese company Toshiba forecasted on the 7th that the shortage of electronic components, including semiconductors, will continue until March next year due to the impact of Russia's invasion of Ukraine. According to Bloomberg News, Hiroyuki Sato, head of Toshiba's Device Division, said in an interview that the semiconductor crisis has not improved at all. He explained that the ongoing semiconductor shortage situation could worsen the supply chain crisis as the war broke out in Ukraine, a major supplier of essential materials for semiconductor manufacturing.

Sato had warned in September last year that semiconductor supply might not be properly maintained, and he added that the situation has not improved at all since then. He explained that while some semiconductor companies believe the impact of the Ukraine war will not be significant, it is clear that the situation is not positive.

Ukraine is a major supplier of rare gases essential for semiconductor production, such as neon, krypton, argon, and xenon. According to Taiwanese market research firm TrendForce, Ukraine accounts for about 70% of the world's neon production. Palladium, an essential material for semiconductor production, is known to be produced about 40% worldwide by Russia. Krypton, used in laser light sources for semiconductor production, is also produced about 80% worldwide by Russia and Ukraine.

Earlier, international credit rating agency Moody's also stated that supply disruptions of neon, palladium, and other materials caused by Russia's invasion of Ukraine could intensify the semiconductor supply shortage. If the war does not end within a few months, the semiconductor shortage will worsen, posing a significant risk to manufacturers of automobiles, electronic products, and smartphones.

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