The attack on Ukraine is not expected to have a signficant impact on global chip supply

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The Russian invasion of Ukraine rightly drew criticism from around the world, but less clear is the effect that punitive sanctions will have not only on the Russian economy but on the global economy as a whole. With the world still feeling the effects of the pandemic and supply shortages, will sanctions impact global chip supply? Of course, chips are not only made of silicon. At all stages of production, all types of materials are needed. The removal of any of these rare materials can have a significant impact on chip production. Fortunately, it seems that semiconductor manufacturers expect that the conflict will not lead to any significant consequences.

The Taiwanese company TSMC believes that it will not have serious problems with supplies. The Taiwanese government released a statement (via Reuters) after a meeting chaired by Vice Premier Shen Zhong-chin, which stated that raw materials, including neon, C4F6, and palladium metal, would not have much impact on domestic production, since they could be obtained from other sources and already stockpiled.

Besides, John Neuffer Executive Director and President of the Semiconductor Industry Association, said: “The semiconductor industry has a diverse set of suppliers of key materials and gases, so we do not believe there are immediate risks of supply disruptions associated with Russia and Ukraine.”

According to the report Bloomberg, Intel believes that this will not affect. “We do not expect any impact on our supply chain,” Intel said. “Our strategy of having a diverse global supply chain minimizes the risk of potential disruptions at the local level.”

Similarly, GlobalFoundries Inc does not expect any significant impact. “At GlobalFoundries, we do not anticipate direct risk,” the company said in a statement. “We are not completely immune to global scarcity, but our presence provides us with a great deal of isolation.”

As Ukraine itself recovers from ongoing Russian aggression, broader economic problems linked to issues such as inflation and energy security remain persistent concerns. At the very least, there is hope that for now, global chip production will continue more or less as usual.

In broader news, tech companies have begun restricting Russia’s access to technology and products in line with recently imposed international sanctions. The situation is very fluid and we can expect statements and specific details from individual companies in the coming days.

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