NEW YORK (BLOOMBERG) – With the semiconductor trade stretched skinny by the pandemic and an unprecedented surge in demand, chipmakers had a reassuring message Thursday (Feb 24): The disaster in Ukraine is unlikely to make shortages worse.
Russia is a small marketplace for the chip trade and its invasion of Ukraine doesn’t signify a menace to chip provide, the Semiconductor Business Affiliation mentioned Thursday.
The US and allied sanctions in opposition to Russia are also unlikely to have a big impact on trade gross sales, the group mentioned.
“Whereas the affect of the brand new guidelines to Russia may very well be vital, Russia is just not a big direct client of semiconductors, accounting for lower than 0.1 per cent of worldwide chip purchases,” Semiconductor Business Affiliation chief govt officer John Neuffer mentioned in a press release.
“As well as, the semiconductor trade has a various set of suppliers of key supplies and gases, so we don’t consider there are fast provide disruption dangers associated to Russia and Ukraine.”
Ukraine’s standing as a significant producer of neon has sparked considerations as a result of the gasoline is utilized in semiconductor manufacturing. However chip corporations, which have been alerted to this attainable chokepoint in 2014 when Russia annexed Crimea, have diversified their suppliers since then.
Some particular person corporations additionally issued statements aimed toward calming prospects. “We don’t anticipate any affect on our provide chain,” Intel mentioned. “Our technique of getting a various, world provide chain minimises our danger of potential native interruptions.”
GlobalFoundries, the US’ largest supplier of outsourced chipmaking, mentioned having vegetation all over the world – with their very own native suppliers – helps mitigate danger. The corporate has factories in upstate New York, Singapore, and Dresden, Germany.
“At GlobalFoundries, we don’t anticipate a direct danger,” the corporate mentioned in a press release. “We aren’t completely resistant to world shortages, however our footprint supplies us with extra insulation.”
