- Russia’s war in Ukraine could hamper the production of neon, a critical gas in advanced semiconductor manufacturing, further aggravating the semiconductor chip crisis, CNBC reports.
- Neon is fundamental for the lasers in a chip production process known as lithography, very vital for Samsung Electronics Co Ltd (OTC:SSNLF), Intel Corp (NASDAQ:INTC), and Taiwan Semiconductor Manufacturing Co Ltd (NYSE:TSM).
- CNBC notes that a handful of companies in Ukraine, including Ingas, Cryoin, and Iceblick, account for more than 50% of the global neon production as per an analyst.
- A potential global neon shortage would further hamper the ongoing supply chain crisis and delay in cars and games consoles like the Sony Group Corp (NYSE:SONY) PlayStation 5.
- Dutch firm ASML Holding NV (NASDAQ:ASML), known for manufacturing highly complex lithography machines, slashed its reliance on neon sourced from Ukraine to ~20% of previous levels.
- However, most major chip manufacturers had several months of neon in reserve, said an analyst.
- The worldwide neon consumption for semiconductor production reached roughly 540 metric tons in 2021, as per CNBC.
- Price Action: INTC shares traded lower by 0.17% at $51.53 in the premarket on the last check Friday.
