Russia-Ukraine Crisis Could Further Jeopardize Ongoing Semiconductor Chip Crisis: CNBC

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 SSNLF, Intel Corp INTC, and Taiwan Semiconductor Manufacturing Co Ltd 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 SONY PlayStation 5.
Dutch firm ASML Holding NV 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.