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New York: The ongoing conflict between Russia and Ukraine could worsen the global chip shortage, according to a Moody’s Analytics report.
Ukraine is a key supplier of rare gasses like neon, used in the production of semiconductor fab lasers, while Russia is a critical producer of rare metals like palladium.
As both of these countries are now engaged in an armed war, Moody’s report states that it could disrupt the global semiconductor chips supply chain.
“There is potential to extend the stress in the supply chain of semiconductors, which are key to manufacturing autos and other electronic equipment in the Asia-Pacific region,” said Moody's Analytics, in the report titled: ‘Limited Trade Between Ukraine and APAC.’
Ukrainian companies like Cryoin play a crucial role in maintaining the global semiconductor supply chain. These companies produce specialty gases like neon, helium, xenon, krypton, and their isotopes, which are later used in semiconductor fab units.
Meanwhile, Russia is the world’s largest producer of palladium, and the second-largest producer of platinum. Due to the ongoing war and the fear of supply chain shortages, spot palladium prices are already at a six-month high.