{"id":1371642,"date":"2022-03-11T15:01:06","date_gmt":"2022-03-11T20:01:06","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1371642"},"modified":"2022-03-11T15:01:08","modified_gmt":"2022-03-11T20:01:08","slug":"more-microchip-headaches-ukraine-halts-half-of-worlds-neon-output","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/more-microchip-headaches-ukraine-halts-half-of-worlds-neon-output\/","title":{"rendered":"More Microchip Headaches: Ukraine Halts Half of World&#039;s Neon Output"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">20<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fmore-microchip-headaches-ukraine-halts-half-of-worlds-neon-output%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1371642&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p class=\"subheading\">Ukraine\u2019s two leading suppliers of neon have halted their operations as Russia continues its attacks on the country. Neon is an essential component in microchips which were already struggling with severe shortages, harming American businesses in sectors ranging from consumer appliances to auto manufacturing.<\/p>\n<p>CNN <a href=\"https:\/\/edition.cnn.com\/2022\/03\/11\/tech\/ukraine-neon-chips\/index.html\">reports<\/a>\u00a0that Ukraine\u2019s two largest suppliers of neon, an essential element in computer chip manufacturing, have halted operations as Russia\u2019s invasion of the country continues. Around 50 percent of the world\u2019s semiconductor grade neon comes from two Ukrainian companies, Ingas and Cryoin, according to figures from the market research firm Techcet.<\/p>\n<figure id=\"D-ROS-B1\" class=\"a8d\"><\/figure>\n<figure id=\"M-ROS-B1\" class=\"a8d\"><\/figure>\n<figure id=\"gmxrevmore\" class=\"H\"><\/figure>\n<div id=\"attachment_6705158\" class=\"wp-caption alignnone\"><a href=\"https:\/\/media.breitbart.com\/media\/2017\/05\/micro.png\"><\/a><\/p>\n<p class=\"wp-caption-text\">An engineer of United Microelectronics Corp (UMC) holds a wafer pod at the company\u2019s wafer factory in Tainan Science Park (SAM YEH\/AFP\/Getty Images)<\/p>\n<\/div>\n<div id=\"attachment_20114826\" class=\"wp-caption alignnone\"><a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/03\/GettyImages-1238901681.png\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-20114826\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/03\/GettyImages-1238901681.png\" alt=\"A burning building is pictured after shelling by Russian forces in Ukraine&#039;s second-biggest city of Kharkiv on March 3, 2022. (Photo by Sergey BOBOK \/ AFP) (Photo by SERGEY BOBOK\/AFP via Getty Images)A burning building is pictured after shelling by Russian forces in Ukraine&#039;s second-biggest city of Kharkiv on March 3, 2022. (Photo by Sergey BOBOK \/ AFP) (Photo by SERGEY BOBOK\/AFP via Getty Images)\" width=\"640\" height=\"480\" \/><\/a><\/p>\n<p class=\"wp-caption-text\">A burning building is pictured after shelling by Russian forces in Ukraine\u2019s second-biggest city of Kharkiv on March 3, 2022. (Photo by Sergey BOBOK \/ AFP) (Photo by SERGEY BOBOK\/AFP via Getty Images)<\/p>\n<\/div>\n<p>Last year global consumption of neon for chip production reached around 540 metric tons, according to Techcet. Both neon suppliers have shut down their operations according to company representatives. The decision to stop production comes as Russian troops escalate attacks on cities throughout Ukraine.<\/p>\n<figure id=\"M-ROS-B2\" class=\"a8d\"><\/figure>\n<p>The stoppage will likely add to the already growing shortage of computer chips worldwide. Estimates vary widely about the amount of neon stocks chipmakers have on hand, but according to Angelo Zino, an analyst at CFRA, chip production could take another hit if the conflict in Ukraine continues.<\/p>\n<p>\u201cIf stockpiles are depleted by April and chipmakers don\u2019t have orders locked up in other regions of the world, it likely means further constraints for the broader supply chain and inability to manufacture the end-product for many key customers,\u201d Zino said.<\/p>\n<p>When Russia invaded Ukraine in 2014, the price of neon shot up 600 percent. Techcet president and CEO Lita Shon-Roy <a href=\"https:\/\/www.cnbc.com\/video\/2022\/03\/11\/neon-supply-restricted-as-ukrainian-producers-shut-down.html\">told<\/a> CNBC: \u201cThis will have an impact. It will continue to constrain the chip source going into the automotive industry.\u201d<\/p>\n<p>Russia is also a key palladium supplier and supplies 33 percent of the global demand, according to Techcet. Palladium prices jumped over seven percent on Thursday as part of a surge in precious metals. Shon-Roy told CNBC: \u201cIt\u2019s just one more thing that is going to force prices up\u2026 The automotive market is going to feel that to be sure.\u201d<\/p>\n<p>Nikolay Avdzhy, the chief commercial officer of Ingas, stated that before the Russian invasion the company produced 15,000 to 20,000 cubic meters of neon per month for customers in Taiwan, Korea, China, the United States and Germany. Approximately 75 percent of this was used in the chip manufacturing industry.<\/p>\n<p>Larissa Bondarenko, the business development director of Cryoin, stated that the company previously produced around 10,000 to 15,000 cubic meters of neon per month.<\/p>\n<p>Read more at <a href=\"https:\/\/edition.cnn.com\/2022\/03\/11\/tech\/ukraine-neon-chips\/index.html\">CNN here.<\/a><\/p>\n<p><strong><i>Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship. Follow him on Twitter\u00a0<\/i><i><a class=\"x5l\" href=\"http:\/\/twitter.com\/lucasnolan\" target=\"_blank\" rel=\"noopener external\">@LucasNolan<\/a>\u00a0<\/i><i>or contact via secure email at the address\u00a0<a class=\"x5l\" href=\"mailto:lucasnolan@protonmail.com\" target=\"_blank\" rel=\"noopener external\">lucasnolan@protonmail.com<\/a><\/i><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Ukraine\u2019s two leading suppliers of neon have halted their operations as Russia continues its attacks on the country. Neon is an essential component in microchips which were already struggling with<\/p>\n","protected":false},"author":1,"featured_media":2315279,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1371642","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1371642","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1371642"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1371642\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1371642"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1371642"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1371642"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}