The COVID-19 pandemic caused disruptions in global supply chains and consequent shutdowns of factories as well as production delays. Companies have experienced significant revenue drops exceeding USD 480 billion due to challenges faced by the pandemic. Simultaneously, there was an unprecedented surge of 14% in global demand for PCs as individuals shifted towards remote work setups. However, this sudden spike meant that chips crucial for manufacturing purposes became difficult to acquire—creating shortages that affected numerous sectors including automotive and consumer electronics.
The world's neon chip production has encountered a significant setback due to an offensive action launched by Russia against Ukraine, causing it to decline by a staggering 50%. The two Ukrainian companies at stake, Ingas, and Cryoin, fulfill an essential role as suppliers responsible for furnishing roughly between 43% and 55% of semiconductor-grade neon required worldwide. This particular type of neon bears immense importance as it is crucial for fabricating lasers utilized throughout various stages involved in chip fabrication processes. Henceforth, this disruptive development has set forth widespread consequences throughout the international chip industry.