Attack on Ukraine not expected to have major impact on global chip supply
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The Russian invasion of Ukraine has rightfully drawn global criticism, but what is less clear is that punitive sanctions will have an impact not only on the Russian economy but on the wider global economy as well. Will sanctions have an impact on global chip supply while the world is still affected by the pandemic and supply shortages?
Of course, chips aren’t just made of silicon. Various materials are required at all stages of production. Removing any of these rare materials can have a huge impact on chip production. Thankfully, it appears that semiconductor makers don’t expect any major repercussions from the conflict.
TSMC is confident that it will not encounter any serious supply issues. The Taiwan government issued a statement (via Reuters) told a meeting chaired by Deputy Prime Minister Sim Jong-chin that raw materials including neon and C4F6 and palladium metals would not have much impact on domestic production because they can be sourced from elsewhere and are already stored.
also, John Newfer“The semiconductor industry has diverse suppliers of key materials and gases, so we do not see a direct risk of supply disruptions related to Russia and Ukraine,” said the CEO and President of the Semiconductor Industry Association.
According to a report Bloomberg, Intel doesn’t think it will be affected in any way. “We do not anticipate any impact on our supply chain,” Intel said. “Our strategy of having a diversified global supply chain minimises our potential risk of local disruption.”
Likewise, GlobalFoundries Inc doesn’t think there will be any significant impact. “At GlobalFoundries, we anticipate no immediate risk,” the company said in a statement. “We’re not completely immune to global shortages, but our footprint provides us with more insulation.”
Broader economic concerns surrounding issues such as inflation and energy security remain persistent challenges as Ukraine itself is uneasy about continued Russian aggression. The hope, at least for now, is that global chip production will continue more or less as usual.
In broader news, tech companies have begun restricting Russia’s access to technology and products that comply with newly imposed international sanctions. The situation is very fluid, and we can expect announcements and specific details from individual companies in the coming days.