Chip industry under threat with neon production set to fall off a cliff following Russia's invasion of Ukraine

More than half of the world's neon is produced by a handful of companies in Ukraine, according to Peter Hanbury, a semiconductor analyst at research firm Bain & Co.

With world-leading Ukrainian firms having shuttered their operations, neon production is now set to fall off a cliff as the conflict drags on. The ongoing global chip shortage has already wreaked havoc on supply chains and led to lengthy delays on products such as new cars and games consoles like the PlayStation 5.Neon is a byproduct of large-scale steel production.

Alan Priestley, an analyst at Gartner, told CNBC that most major chip manufacturers have several months of neon in reserve, adding that it's not a major issue for them yet. It took crucial steps to try to limit future risks associated with neon supplies in the wake of Russia's annexation of Crimea in 2014.

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Fuente: CNBC - 🏆 12. / 72 Leer más »