war in Ukraine could see the production of neon, a critical gas in advanced semiconductor manufacturing, fall to worryingly low levels at a time when the world is already grappling with a chip shortage.
According to a semiconductor analyst at research firm Bain & Co, Peter Hanbury, said, “More than half of the world’s neon is produced by a handful of companies in Ukraine.” The firms did not immediately reply to a CNBC request for comment but Ingas and Cryoin have both ceased operations in recent weeks amid attacks from Russian forces, according to Reuters.
Based on estimates from consultancy firm Techcet, worldwide neon consumption for semiconductor production reached roughly 540 metric tons last year. Given Ukraine produces over half of the world’s neon, the figure could fall below 270 metric tons in 2022 if the nation’s neon producers remain shut.