Chip Shortage, Supply Chain Disruptions Expected to Continue
April 21, 2022—As everyone in the automotive aftermarket is aware, the current issue of shortages and supply chains is not breaking news. But unfortunately, delays are forecasted to be the norm for the foreseeable future, and this includes all of the delays in production that they may bring.
Semiconductors, which use neon in their production, have been and still are feeling a major blow from these issues.
According to an article published by The National Law Review, 45 to 54 percent of the globe's semiconductor-grade neon, which is needed for the lasers used in semiconductor production, comes from two Ukrainian companies: Ingas and Cyroin.
Last year, global consumption of neon (including semiconductor production) reached 540 metric tons. While it is true that many semiconductor manufacturers stockpiled neon prior to the shutdown of the Ukrainian companies due to the Russian invasion, it was never meant to last as long as it may now need to.
Some manufacturers are predicting that the semiconductor shortage will continue into 2024, but it is possible that foundry capacity could see some normalization by the end of 2022. However, as anyone in the industry knows, nothing is set in stone. From how things currently look, it is going to stay that way for awhile.
