The war in Ukraine paralyzes the production of equipment in the world: what is the problem

If somewhere in the world they still think that they will not be hooked by the consequences of Russia’s invasion of Ukraine, then they are greatly mistaken, because the problem with the global shortage of chips can be further exacerbated

Chip shortage to worsen due to war in Ukraine / Photo: REUTERS, Collage: Today

This could result in millions of cars not being produced this year, let alone smaller ones.

The chip crisis in the world has developed due to the lack of neon gas, which is crucial for the semiconductor manufacturing process. Russia and Ukraine were the largest exporters of neonbut production stopped due to the war, according to a Market Place article.

Neon is used in the production of approximately 90 percent of the chips.

Companies played it safe, making stocks of neon for two to three months is a measure that was introduced after the Russian invasion of Ukraine in 2014.

But experts are still concerned. Semiconductor analyst Nina Turner says companies are downplaying concerns.

There is also a risk that shelling of Ukrainian territory by Russia will destroy objectsproducing neon, which will make it impossible to continue operations even after the end of the war.

The representative of the Ukrainian company from Odessa, Larisa Bondarenko, said that they had to stop production a few days ago and it is not clear when it will resume.

“There is a high risk that the port will be destroyed, then the logistics will be much more difficult to restore,” she added.

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Source: Segodnya

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