The Russian-Ukrainian war may extend the crisis in the manufacture of new generation devices and graphics cards

The continuation of the Russo-Ukrainian war has brought two Ukrainian neon suppliers out of business. This, in turn, is likely to affect the global shortage of semiconductors. According to a statement from an analyst at an investment research firm.

The two companies are Ingas and Cryoin, based in Mariupol and Odessa respectively. An adviser to the Ukrainian Interior Ministry stated that Mariupol is completely besieged and that the situation is critical in the coastal city, where electricity and water have been cut off for residents for more than a week.

Odessa, on the other hand, is a pivotal location for both Ukraine and Russia and has been cut off from the world by a blockade imposed by Russian Navy ships that dock near the territorial waters of Ukraine. Alexei Muravyev, professor of national security and strategic studies at Curtin University, said in an interview with Al Jazeera that if Russia took over Odessa, it would effectively cut off Ukraine from foreign trade, including semiconductor trade.

Specifically, Ingas produced 15,000 to 20,000 cubic meters of neon each month before the war, for customers in Taiwan, Korea, China, the United States and Germany. About 75% of neon was consumed by the chip industry, Nikolai Avdeje, chief commercial officer, told Reuters. In addition, Larisa Bondarenko, Director of Business Development at Cryoin stated that the company has three months of reserves to fulfill orders during the shutdown. But if any of the attacks in Odessa hit its equipment, the company will deteriorate and will not meet the production conditions.

After the Corona virus crisis, it was conceivable that this shortage might end in 2023, however, this new crisis may cause it to extend for a longer time. Angelo Zino said if stocks run out by April and chip makers don't have new sources from other regions around the world. This will likely mean more constraints on the supply chain and the inability to manufacture the final product for many key customers.