During this time, the Conflict between Russia and Ukraine has escalated again, and the global semiconductor industry may once again enter the "chip famine". It is worth mentioning that 90% of the neon gas used in the US semiconductor industry is imported from Ukraine, and more than 35% of the palladium is imported from Russia. Once the two countries go to war, the United States may suffer a supply cut. So will China be affected? Chinese experts said that China's technology is very mature.
The United States may be cut off from supply, and the White House warns companies to respond
A few days ago, the White House issued a warning to the chip industry that as the contradiction between Russia and Ukraine further deepens, it may lead to the supply of US semiconductors. It is hoped that the chip supply chain of US enterprises can find new channels for key materials as soon as possible to avoid Russia using the chip problem to retaliate against the United States. The U.S. Safety Council has recently been communicating with members of the chip industry to analyze the extent of dependence on Russian-Ukrainian materials and to find new suppliers.
In fact, this is not the first time that the United States has encountered a chip crisis, just in January, the US Department of Commerce issued a statement that by the second half of 2022, global semiconductors will enter a shortage mode, and the "chip shortage" will be further aggravated. It is understood that neon gas is a crucial material for semiconductors. Neon gas is a by-product of The Russian steel manufacturing industry, which is then purified by Ukraine.
Although neon gas is a key material for semiconductors, due to the small market volume and the technical threshold required for purification, the international supply chain is extremely dependent on Russia and Ukraine, and both are indispensable. The United States has constantly threatened Russia to face economic sanctions if it "invades" Ukraine. At that time, noble gases and other key semiconductor materials will become Russia's "trump card". For China, whether the situation is tense or not, the impact on China is not great.
Chinese experts said: The technology is very mature
The crisis in Ukraine puts international electronic gases at risk of being cut off. As a manufacturing power, China has achieved a technological breakthrough in neon gas. On the one hand, China is the world's largest steel producer with a mature production process, while the noble gas itself is deeply bound to the steel industry. On the other hand, refining rare gases requires a certain technical threshold, and China's production process has matured, and for China, it will not be "stuck in the neck". If there is a war between Russia and Ukraine and the supply chain is broken, China can fully guarantee domestic supply.
As for the situation between Russia and Ukraine, Japan, South Korea and the United States are the most nervous. Japan can only produce a small amount of rare gas, and the vast majority of resources need to be imported from China and Ukraine. South Korea originally did not have neon refining technology, completely dependent on foreign imports, until the beginning of 2022, just achieved independent production, is not expected to produce too much, even South Korea's domestic supply can not be fully satisfied, still rely on imports.
Affected by the strong demand of the chip industry and the situation in Russia and Ukraine, the price of rare gases has also continued to rise, with neon gas rising from about 60 yuan per cubic meter to about 170 yuan, and the market price of krypton gas directly doubled by 3 times. This is an opportunity for China.
Reference to some sources: World Wide Web