At the beginning of the pandemic in 2020, many countries and industries were forced to temporarily shut down their operations to contain the spread of the coronavirus. This ultimately led to the global chip shortage we know today, and while things should improve, it looks like this has hit a speed bump.
Because over in Ukraine, where there is a war going on, two companies – Ingas and Cryoin – have stopped supplying them with neon gas. For those who don’t know, neon gas is essential in the manufacture of semiconductors. Given that these two companies are responsible for providing about half of the world’s neon gas, that’s a huge step backwards in terms of chip production.
According to the companies, they have stated that the ongoing war has resulted in the destruction of critical infrastructure and as a result they are being forced to shut down their operations. While there are obviously other companies supplying neon gas, the fact that half of that production is now gone (and we don’t know for how long) means the companies will have to source their supply from other companies, which in turn could make a massive one generate residue.
It could also cause neon gas prices to go even higher than before, where prices have risen 500% due to the pandemic, so we can imagine it could get even more expensive. It’s still unclear how big the impact will be for consumers, so only time will tell.
Filed in . Read more about SoC Source: Gizchina
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