Russian peril hovers over semiconductor industry

Technician with wafer. © iStock.

Semiconductor manufacturing uses lasers with rare gases such as neon to finely etch silicon tiles named wafers. In Odessa, a Ukrainian resort town on the shores of the Black Sea, a little-known company named Cryoin is the world leader in the production of rare gases. Because of the Russian invasion, Cryoin’s work has ground to a halt. On top of that, there is no way to export the valuable gases. According to analysts, Ukraine produces about 50% of neon and 40% of krypton sold worldwide. These gases are by-products of the Russian steel industry that are refined in the former Soviet republic using cutting-edge technology. Akira Minamikawa of market research firm Omdia states that this will affect all products that use chips, as only the most advanced semiconductors don’t require neon in their manufacturing. This isn’t helping the chip shortage, which started with the pandemic.

⇨ Ars Technica, FT, “Low on gas: Ukraine invasion chokes supply of neon needed for chipmaking.”

⇨ Tom’s Hardware, Francisco Pires, “Gas used to make semiconductors threatened by Russian invasion of Ukraine.”

2022-03-07