Ukraine crisis to worsen global chip shortage

Ukraine crisis to worsen global chip shortage

KUALA LUMPUR: The ongoing Ukraine crisis poses a serious threat to the lives of many innocent individuals, which in fact is far worse than any situation one can experience in a lifetime. Our hearts go out to all those stuck in this unfortunate situation.

KEY TAKEAWAYS

  • How is Ukraine crisis affecting car manufacturing?

    Ukraine supplies a critical raw material used to manufacture microchips, the shortage of which will have a toll on new car manufacturing.
  • Is there an immediate effect of the Ukraine-supplied neon shortage?

    The chip manufacturers are rumored to be stockpiling neon as the current situation with Ukraine seemed almost inevitable. Meaning there won’t be an immediate effect on chip production.
  • Also, crises of such nature impact global trade, and this time car manufacturing would be severely affected. Why? Well, that’s because Ukraine supplies a critical raw material used to manufacture microchips, the shortage of which will have a toll on new car manufacturing.

    Also Read: McLaren Artura launch pushed back due to chips shortage

    neon shortage

    This critical raw material is none other than neon, a component used to operate lasers required to make microchips. It is a well known fact that the storage of microchips is a hard hit reality that has had a negative impact on the auto industry and now the Ukraine crisis will only push the situation into a more challenging position.

    Ukraine provides 70 percent of the world’s neon which is all gone at the moment. Also, Russia is a large producer of the same, however, trade is restricted with it at the moment, leaving the world and the auto industry in a pickle.

    The chip manufacturers are rumored to be stockpiling neon as the current situation with Ukraine seemed almost inevitable. Meaning there won’t be an immediate effect on chip production, however, if the situation doesn’t improve there would definitely be an impact on the supply of new cars and other products that use microchips.

    Also Read: Global chip shortage hits Toyota, 40% production fall next month

    Purva Jain

    Purva Jain

    Purva is a crazy admirer of cars and she has got a lot of expertise in their detailing. Though, she has mastered in Economics but cars have always been her field of interest. She is an introvert in talking but when it comes to cars and the latest news regarding them she talks like hell. Exploring new cars as well as the vintage machines is listed in her hobbies while getting to know about the history behind the same are the things which she enjoys the most. She may seem silent from the outside but inside her is a volcano erupting to engulf the mean machines.

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