‘Chip shortage could be exacerbated by Ukraine war’

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The global chip shortage appeared to be recovering this year, but the war in Ukraine could turn the tide. That is what research agency Techcet fears. This is based on the supply of neon.

After production stops due to the corona measures, a new problem for the car industry arose last year in the form of the worldwide chip shortage. This has had a significant impact on the number of new cars produced since last summer. While most manufacturers seemed to expect that the chip shortage would largely be over in the second half of this year, the war in Ukraine may throw a spanner in the works. The supply of neon, essential for the production of chips, is being jeopardized as a result.

The American research firm Techcet fears, according to Automotive News for a return to the lowest point of the chip crisis, as it was reached at the end of last year. 70 percent of the world’s neon production takes place in Ukraine and the US chip industry is said to be almost entirely dependent on supplies from Ukraine and Russia. Neon is used for the lasers used to produce chips. Analysts at Alixpartners are less pessimistic than Techcet, as chipmakers worldwide are said to have built up ‘several months’ supply of neon, as possible disruptions in supply from Ukraine were taken into account.

– Thanks for information from Autoweek.nl

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