Computer Chip Shortages Will Have Effect On Producing Phones, Autos, More
The violent and tragic invasion of Ukraine by Russia is about to make supply chins even more unreliable for computer chips. So many headlines are concerned with Russian oil and whether the West should boycott its flow. However, there is a location in Ukraine that has the special gas needed in order to etch computer chips. The good folks at wired.com put out a story that explains the new concern in the semiconductor industry.
The article highlights a little-known company called Cryoin, which plays a big role in the global production of semiconductors.
Cryoin makes neon gas, a substance used to power the lasers that etch patterns into computer chips. It supplies companies in Europe, Japan, Korea, China, and Taiwan, but most of its neon is shipped to the US, the company told WIRED. Now analysts are warning that the ripple effects caused by disruption to Cryoin’s supply could be felt around the world.
Cryoin’s production of neon and other gases ground to a halt on Thursday as the invasion began, says business development director Larissa Bondarenko.
“We decided that [our employees] should stay at home for the next couple of days until the situation is clearer, to make sure that everyone is safe,” she says, adding there was no damage to the facility as of Monday. Despite plans to restart production over the weekend, missiles over Odesa meant it was still too dangerous. Bondarenko, who lives half an hour away from the site by car, says she has been sleeping in her basement. “Thank God we have one in our house.”
Semiconductors act as the technological brains in our phones, laptops, smart homes, and even cars. The industry is already wrestling with shortages as it struggles to keep up with pandemic demand for devices. In 2021, Semiconductors act as the technological brains in our phones, laptops, smart homes, and even cars. The industry is already wrestling with shortages as it struggles to keep up with pandemic demand for devices.
In 2021, chip shortages restricted production for almost every major carmaker, with companies like General Motors shutting entire factories as a result. Apple, one of the world’s largest chip buyers, told manufacturers in October that it would make 10 million fewer iPhones in 2021 than planned due to chip shortages, according to Bloomberg.
After Russia took over Crimea, chip shortages became part of the world’s reality. The ironic story of Cryoin is that they get much of the etching gas that they produce from steel factories in Russia. The world’s economy is interlinked, whether it’s minerals or technical prowess, or manufacturing.
The Russian war against the Ukraine will cause as yet unknown issues with everything from neon gas to crude oil. This lengthy article will give you a background on how every time Russia has made aggressive moves with its military, it affects every country’s ability to continue to use the worldwide system we have built.
read more at wired.com