by The global shortage of microchips for cars will worsen due to Russia’s attack on Ukraine. The war may lead to the shutdown of many automobile factories.
The fact is that the production of microchips is impossible without neon – the industry requires 540 tons of this material annually. Not everyone knows that Ukraine is the largest supplier of neon in the world, reports Reuters. This gas is a byproduct of steel production, and in our country, it is produced at metallurgical enterprises.
In recent years, between 46% and 54% of neon on the global market was supplied by two Ukrainian companies – Ingas and Cryoin. Both of them have ceased their operations now.
The company Ingas is located in the besieged Mariupol. Every month, it produced 15-20 thousand cubic meters of neon, 75% of which was used for the production of microchips.
The Odessa enterprise Cryoin ceased operations on the first day of the war, February 24. It produced 10-15 thousand cubic meters of neon per month.
Major microchip manufacturers – such as the Taiwanese company TSMC – have reserves of neon and can continue operations for now. However, smaller companies may suffer and stop producing microchips as early as April. This could result in the shutdown of car factories.
