Skip to content
Resilic Logo
  • Solutions
        • Solutions

          • EventWatchAI
          • RiskShield
          • Multi-Tier Mapping
          • CommodityWatchAI
          • Supplier Assessment Library
        • Data Marketplace

          • Autonomous AI Mapping
          • Resilinc Disruption Vulnerability Index
          • R Score
          • Supplier Screening
          • Application Programming Interface (API)
        • Services

          • Advisory Services
          • Data and Intelligence Services
        • Elevate your Supply Chain Risk and Resiliency Program

          Schedule Demo
  • Use Cases
        • By Industry

          • Aerospace, Defense, Government
          • Automotive and Industrial
          • Healthcare & Life Sciences
          • High-Tech & Semiconductor
        • By Role

          • Supply Chain Risk & Resiliency Program Managers
        • By Business Need

          • Business Continuity Planning
          • Uyghur Forced Labor Prevention Act (UFLPA)
        • Elevate your Supply Chain Risk and Resiliency Program

          Schedule Demo
  • Resources
        • Learning Center

          • Blog
          • Case Studies
          • Event
          • On Demand Webinars
          • White Paper & Reports
        • Connect

          • Schedule Demo
          • Request Pricing
        • Special Reports

        • Special Report
        • Find valuable resources for managing supply chain disruptions in our Special Reports section.

        • Elevate your Supply Chain Risk and Resiliency Program

          Schedule Demo
  • Company
          • About Resilinc
          • Partners
          • Careers
          • Resilinc In the News
          • Press Releases
          • The Risk Game
        • Elevate your Supply Chain Risk and Resiliency Program

          Schedule Demo
  • Pricing
  • Contact
Login
Schedule Demo
Resilic Logo
  • Solutions
    • Solutions
      • EventWatchAI
      • RiskShield
      • Multi-Tier Mapping
      • CommodityWatchAI
      • Supplier Assessment Library
    • Data Marketplace
      • Autonomous AI Mapping
      • Resilinc Disruption Vulnerability Index
      • R Score
      • Supplier Screening
      • Application Programming Interface (API)
    • Services
      • Advisory Services
      • Data and Intelligence Services
  • Use Cases
    • By Industry
      • Aerospace, Defense, Government
      • Automotive & Industrial
      • Healthcare & Life Sciences
      • High-Tech & Semiconductor
    • By Role
      • Supply Chain Risk & Resiliency Program Managers
    • By Business Need
      • Business Continuity Planning
      • Uyghur Forced Labour Prevention Act (UFLPA)
  • Resources
    • Learning Center
      • Blog
      • Case Studies
      • Events
      • On Demand Webinars
      • White Papers & Reports
    • Connect
      • Schedule Demo
      • Request Pricing
    • Special Reports
  • Company
    • About Resilinc
    • Partners
    • Careers
    • Resilinc In the News
    • Press Releases
    • The Risk Game
  • Pricing
  • Contact
  • Login
  • Schedule Demo
Menu
  • Solutions
    • Solutions
      • EventWatchAI
      • RiskShield
      • Multi-Tier Mapping
      • CommodityWatchAI
      • Supplier Assessment Library
    • Data Marketplace
      • Autonomous AI Mapping
      • Resilinc Disruption Vulnerability Index
      • R Score
      • Supplier Screening
      • Application Programming Interface (API)
    • Services
      • Advisory Services
      • Data and Intelligence Services
  • Use Cases
    • By Industry
      • Aerospace, Defense, Government
      • Automotive & Industrial
      • Healthcare & Life Sciences
      • High-Tech & Semiconductor
    • By Role
      • Supply Chain Risk & Resiliency Program Managers
    • By Business Need
      • Business Continuity Planning
      • Uyghur Forced Labour Prevention Act (UFLPA)
  • Resources
    • Learning Center
      • Blog
      • Case Studies
      • Events
      • On Demand Webinars
      • White Papers & Reports
    • Connect
      • Schedule Demo
      • Request Pricing
    • Special Reports
  • Company
    • About Resilinc
    • Partners
    • Careers
    • Resilinc In the News
    • Press Releases
    • The Risk Game
  • Pricing
  • Contact
  • Login
  • Schedule Demo
  • Solutions
    • EventWatchAI
    • RiskShield
      • Supplier Assessment Library
      • Business Continuity Planning
    • Multi-Tier Mapping
      • Resilinc Supplier Network
    • Autonomous AI Mapping
    • CommodityWatchAI
    • Data Products and Offerings
    • Supply Chain Risk and Resiliency
      • Advisory Services
      • Data and Intelligence Services
  • Industry
    • Aerospace and Defense
    • Automotive & Industrial
    • Healthcare & Life Sciences
    • High-Tech & Semiconductor
  • Pricing
  • Resources
    • Learning Center
    • Special Reports
    • Events
    • Developer API
  • Company
    • About
    • Partners
    • News
  • Contact
  • Blog
  • Careers
  • Demo
  • Login
  • Customer Hub

Home / Blogs / Russia-Ukraine War: Semiconductor Value Chain Impact

Thumbnail - Russia Ukraine Crisis Impact on Semiconductors Raw Material

Russia-Ukraine War: Semiconductor Value Chain Impact

Mar 08, 2022

Resilinc Editorial Team

Geopolitical, Rare earth minerals, Supply Chain Disruptions

Russia’s attack on Ukraine rapidly escalated into a humanitarian disaster, with several thousand killed—soldiers on both sides and Ukrainian militia volunteers and civilians—and more than 650,000 Ukrainian refugees forced to flee the violence (as of March 1).

Along with this human suffering, the war has triggered deep and costly disruptions to supply chains—including the already strained semiconductor value chain: Ukraine and Russia are key producers of neon and palladium.

Palladium is used in sensor chips and many types of memory chips, and neon is essential for chip lithography. According to a special report from Resilinc analysts, Russia produced 40% of global palladium in 2021. Ukrainian neon—refined by Cryoin in Odesa, Ukraine, from Russian crude neon gas—supplies much of semiconductor manufacturers’ neon, especially those manufacturers based in the U.S.

The Resilinc report also reveals that the 2014 Russian seizure of Crimea pushed neon prices up 600%; the shock sent much of the chip industry scrambling to diversify its supply. Even with Korean, Dutch, and Japanese semiconductor manufacturers reducing their dependence on Ukrainian and Russian neon, those two countries still supply 40% to 50% of semiconductor grade neon globally; this according to the Wall Street Journal which quoted market research firm Techcet CA LLA.

The U.S. semiconductor sector is particularly vulnerable. An industry analyst interviewed by Wired estimated 80% to 90% of neon coming into the U.S. was from Ukraine. This dependency led the Biden Administration to warn chip makers on February 10 to seek other sources. Now that war has broken out, “any disruption in Ukraine will hit chipmakers at a time when the industry is already under intense pressure from post-pandemic demand,” wrote Wired’s Morgan Meaker.

For alternate sources of neon, the most likely country is China. But the concern there is the obvious geopolitical tension between the U.S. and China: it might be hard for the U.S. to swallow its pride and reach out for neon.

As of February 28, Ukrainian-based Cryoin had temporarily shut down production so employees could stay home. But regardless of the short-term outcome of combat, the sanctions being imposed on Russia are likely to result in major price increases for palladium.

There’s also the possibility that Russia will retaliate against the U.S. for banning export of advanced semiconductors to Russia, and convincing Japan, South Korea, and chip-making leader Taiwan to follow suit.

As the Russia-Ukraine situation unfolds, Resilinc will continue to publish updates on the situation’s impact to the supply chain. You can view and download (for free!) our most recent Special Reports via our Resources page or visit our Blog for the latest news.

 

 

Resilinc Special Report on Silicon Crisis

Resilinc Special Report

Resilinc Special Report on Silicon Crisis

Our Special Report shows you which materials are in shortage and how CommodityWatchAI can help you overcome volatile commodity prices.

Download Now

Recent Posts

Rethinking Black Swan Events for Modern Supply Chain Risk Management

Q&A with 2023 Women in Supply Chain Winner Beth Cook

As the DSCSA Compliance Date Nears, are Pharmaceutical Supply Chains Ready?

Top 5 Aerospace Industry Supply Chain Disruptions of 2023

Panama Canal Drought: Lower Water Levels, Higher Supply Chain Risk

China’s Export Restrictions on Germanium and Gallium  

4 Ways to Develop a Demand-Responsive Supply Chain

Top 10 Supply Chain Disruptions: 2023 Midyear Recap

About Resilinc

We’re the world’s leading supply chain monitoring, mapping, and resiliency solution. Over 100k organizations partner with us to take their SCRM programs from reactive to resilient.
Request Demo

Recent Blogs

Loading...
An image of a black swan amongst a group of white swans
Sep 25, 2023
5 MIN READ
Resilinc Editorial Team

Rethinking Black Swan Events for Mode...

Black swan supply chain events have been traditionally associated with improbable, rare, or unlikely events...
Black swan supply chain events have been traditionally associated with improbable, rare, or unlikely events...
SCRM Best Practices, Supply chain management, Supply Chain Resilience
Q&A with Resilinc's Beth Cook 2023 Women in Supply Chain Winner
Sep 19, 2023
5 MIN READ
Resilinc Editorial Team

Q&A with 2023 Women in Supply Chain W...

Supply & Demand Chain Executive just announced the Women in Supply Chain award winners—and Resilinc’s...
Customer success, Supply chain management
A variety of colorful pharmaceuticals.
Sep 12, 2023
3 MIN READ
Resilinc Editorial Team

As the DSCSA Compliance Date Nears, a...

Supply chain shortages have led to frustration at the pharmacy counter for many this year....
Healthcare, Human Health, Supply Chain Resilience
Read All Blogs

Who's in your supply chain?

Better visibility starts now

Email Now|Call Now|Chat Now

Receive our monthly NewsWatch digest

Subscribe
Resilinc Logo

Most Trusted, Cognitive Supply Chain Risk Management Platform

Solutions

Blog

Careers

Company

  • About
  • News
  • Events
  • About
  • News
  • Events

Resources

  • White Papers & Reports
  • Case Studies
  • On-Demand Webinars
  • White Papers & Reports
  • Case Studies
  • On-Demand Webinars

Follows Us

Facebook-f Twitter Linkedin

Sales: [email protected]
Support: [email protected]
Partnerships: [email protected]

Resilinc Logo

Most Trusted, Cognitive Supply Chain Risk Management Platform

Company

  • About
  • News
  • Events
  • About
  • News
  • Events

Resources

  • White Papers & Reports
  • Case Studies
  • On-Demand Webinars
  • White Papers & Reports
  • Case Studies
  • On-Demand Webinars
  • Solutions
  • Blog
  • Careers
  • Solutions
  • Blog
  • Careers

Follows Us

Facebook-f Twitter Linkedin

Sales: [email protected]
Support: [email protected]
Partnerships: [email protected]

© 2023 Resilinc Corporation. All rights reserved.

Data Security

Privacy Policy

Can Reshoring Stabilize the Semiconductor Supply Chain?

Learn more in our in-depth report about disruptions impacting reshoring growth, the semiconductor workforce gap, and actionable risk mitigation strategies.

           Download Now