The Covid-19 pandemic has caused a global overdemand for semiconductors (chips), and from the start of 2021 until now the outlook for countries has been dark at the level of seeking new ways of supplying or being producers. With Russia’s invasion of Ukraine, supply chains to the United States (EU) will shrink, as the countries are suppliers of neon gas and palladium, key materials for chip production.
The origin of the shortage of semiconductors came when manufacturers had to close their factories and resources were prioritized over demand, which, during the last two years, has focused on technological products, in that sense, one of the most affected industries. It was the car.
According to Roberto Martínez, coordinator of the Specialty in Supply Chain Management, and Omar Longoria, coordinator of the Master’s Degree in Electronic Design at the Jesuit University of Guadalajara (ITESO)microprocessors are the foundation of the global digital economy and are the “brain” that allow the operation of the components or electronic items that we use on a day-to-day basis.
How is the Russia-Ukraine conflict hurting US chip supply?
Techcet estimates – market research firm Californian–they assure that 90 percent of US chip neon supplies come from Ukraine; while 35 percent of palladium, used in memories and sensors, is sourced from Russia.
The last time Russia invaded Ukraine in 2014, the price of neon shot up 600 percent.
Joe Biden seeks to be a chip producer to cope with the shortage
The US Commerce Department revealed in January this year that the supply of computer chips fell alarmingly. For this reason, Joe Biden asked Congress on January 25 to approve a bill that would provide 52 million dollars to nationally produce the vital resource for digital life.
The US market already has a semiconductor market, but it uses Samsung and TSMC to make its processors. For this reason, the new infrastructure project of geostrategic origin proposed by the Joe Biden administration proposes to build factories in the country for companies such as Samsung, TSMC and Intel to position themselves against China and the rest of the world.
At the beginning of February, with the Russia-Ukraine conflict already on the world scene, the White House refused to give details of the shortages that the country could face; however, according to Reuters, a senior official reiterated that the administration was prepared if Russia invaded Ukraine.
“Part of that is working with companies to make sure that if Russia takes actions that interfere with supply chains, companies are prepared for disruptions,” the spokesman said.
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