Russia and Ukraine War: Neon Shortage and Global Chip Crisis

Russia’s invasion of Ukraine has drastically impacted neon production, a critical element required for advanced semiconductor manufacturing. Leading neon companies in Ukraine have ceased operations amid attacks and sieges. The global supply chain is already struggling with an aggravated chip shortage and the war has become an additional cause for concern with most of the world’s semiconductor-grade neon coming from Ukraine. Industries that are likely to face the ripple effects of higher prices, delivery delays, and supply shortages are the high-tech, automotive, and aerospace industries.