Major chipmakers could weather neon shortages as result of war in Ukraine for "two months or more"

pcgamer.com:

Neon isn't just the gas that makes pretty signs, it's actually rather integral to the manufacturing of those little bits of processed silicon that make our PCs function. And two of the key producers of neon are based in Ukraine, which means that around half of the world's supply has vanished almost overnight because of the Russian invasion.

Neon is used in the lithography step where lasers are used to etch into otherwise pristine wafers of silicon, and Ingas and Cryoin, located in Mariupol and Odessa respectively, together accounted for between 45 and 54% of the supply for the semiconductor industry, according to an exclusive report by Reuters.

With these two firms closing down their operations that leaves a big hole in the supply chain, which could lead to further chip shortages if reserves run dry and alternative supplies can't be located. Taiwanese firms, such as TSMC, already have «safety stocks» of neon standing by, according to the Economy Ministry of Taiwan speaking to Reuters, and so do not anticipate any real impact on the global supply chain. But that's likely only in the short term.

Speaking with The Register, Intel has also largely dismissed what it is calling «a potential local interruption.»

«Intel has assessed the possible impact of the conflict on Intel's supply chain,» an Intel spokesperson says. «Intel's strategy of having a diverse, global supply chain minimizes its risk to potential local interruption. However, we are monitoring the situation carefully.»

Market research firm, Techcet, provided Reuters with much of the data for its report, and its president has estimated that the larger semiconductor manufacturers will likely be able to cover the shortfall for an extended period of time, while smaller