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 has rightfully drawn criticism from around the globe, but what's less clear is the effect that punishing sanctions will have not just on the Russian economy, but the wider global economy. With the world still feeling the effects of the pandemic and supply shortages, will the sanctions have any impact on global chip supplies?

Of course, chips are made of more than just silicon. There are all kinds of materials needed at all stages of production. The removal of any of these rare materials can have a drastic impact on chip production. Thankfully, it seems as though semiconductor manufacturers anticipate that the conflict won’t result in any significant impact.

Taiwan based TSMC believes it won't encounter any serious supply issues. The Taiwanese government released a statement (via Reuters) following a meeting chaired by Vice Premier Shen Jong-chin, saying that raw materials including neon and C4F6 and palladium metal would not see much impact on domestic production as they can be sourced elsewhere and are already stockpiled.

Additionally, John Neuffer, chief executive 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 supply disruption risks related to Russia and Ukraine».

According to a report by Bloomberg, Intel believes it won't experience any impact. “We do not anticipate any impact on our supply chain,” Intel said. “Our strategy of having a diverse, global supply chain minimizes our risk of potential local interruptions.”

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