It was being said that the ongoing Russia-Ukraine war would worsen semiconductor availability but so far, chip makers have downplayed these reports
The semiconductor shortage has already hit the automakers pretty hard as almost all of them have been struggling to complete the orders. The chip shortage has been worse for tech-laden models that have been in high demand, like the Mahindra XUV700 whose waiting period now extends all the way to Diwali next year. With the tensions between Ukraine and Russia leading to a war, it was being reported that the situation with the semiconductor would get even worse. However, now manufacturers of the semiconductor have spoken about this.
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As per the Semiconductor Industry Association, the Russia-Ukraine crisis won’t make the shortage condition any worse. Players in the chip industry have said that the invasion of Ukraine is unlikely to pose a threat to the semiconductor supply. The sanctions from United States and many other nations against Russia are also unlikely to impact the industry in a major way.
“While the impact of the new rules to Russia could be significant, Russia is not a significant direct consumer of semiconductors, accounting for less than 0.1% of global chip purchases,” SIA Chief Executive Officer John Neuffer said in a statement. “In addition, the semiconductor industry has a diverse set of suppliers of key materials and gases, so we do not believe there are immediate supply disruption risks related to Russia and Ukraine.”
Earlier, it was being reported that Ukraine being a major neon-producer would have an adverse impact on the semiconductor supply as this noble gas is used in the manufacturing of semiconductor. However, the chip manufacturers were made aware of this bottleneck back in 2014 when Russia annexed Crimea and have made alternate arrangements ever since.
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In order to calm down the rumours, Intel said,“We do not anticipate any impact on our supply chain. Our strategy of having a diverse, global supply chain minimizes our risk of potential local interruptions.” GlobalFoundries Inc., the biggest supplier of outsourced chipmaking in the United States is said to be enjoying plants around the world. The company has facilities in Singapore, Desden and New York. “At GlobalFoundries, we do not anticipate a direct risk. We are not totally immune to global shortages, but our footprint provides us with more insulation.”, the company said in a statement.
