The White House has warned that Russia, in retaliation for U.S. export restrictions, might block the chip industry’s access to key materials to make semiconductors.Figure: Taken from TSMC’s official website
Recently, relations between Russia and Ukraine have been tense. Techcet, a market research group, issued a report on February 1 warning that many semiconductor manufacturing industries are highly dependent on neon, palladium and other materials produced in Russia and Ukraine. This industry may become the target of Russian retaliation. Confirmed, the White House warned that the chip industry should diversify its supply chain, lest Russia block the chip industry’s access to key materials to make semiconductors in retaliation for U.S. export restrictions.
According to Techcet estimates, more than 90% of U.S. semiconductor-grade neon supply comes from Ukraine, and 35% of U.S. palladium supply comes from Russia. White House National Security Council member Peter Harrell and his staff have been in constant contact with chip makers in recent days regarding their reliance on Russian and Ukrainian semiconductor manufacturing materials and calling for alternative sources, according to people familiar with the matter.
The White House declined to comment on the specifics of the conversation, but a senior official reiterated that authorities were ready if Russia invaded Ukraine. “Part of the preparation is working with companies to make sure they are prepared if Russia takes action to disrupt supply chains,” the official noted. “We understand that there are other sources of supply for key products and are prepared to work with us,” he said. companies to help them identify and diversify their sources of supply.”
Joe Pasetti, SEMI’s vice president of global public policy, sent a letter to members this week asking for an assessment of the risk of exposure to critical chip supply chains, according to a copy obtained by Archyde.com. “As discussed on the call today, see attached…this is regarding a range of semiconductor materials produced in Russia/Ukraine,” he wrote, adding: “Please let me know if your company is concerned regarding possible supply chain disruptions “.
Techcet stressed that neon is important for the lasers used to make the chips, a by-product of Russian steelmaking, which is then purified in Ukraine. Palladium is used in sensors, memory and other applications. The Biden administration has threatened to impose comprehensive export controls on Russia if it invades Ukraine, and some chip companies have begun to assess the potential impact of the Ukraine conflict. A chip company said on condition of anonymity that it has begun a review of sources of neon and other gases.
