Russians supply up to 30% of neon globally: It is a key gas for the production of chips, which are in short supply

In 2021, China imported about $300 billion worth of chips, which are used to make cars, smartphones, computers, televisions, and other devices

The Russian government’s restrictions on the export of gases used in the production of semiconductors could worsen chip shortages on the global market and further increase prices, the Global Times reported this week, citing sources.

The director of the Beijing-based Information Consumption Alliance said the restrictions could affect China’s domestic semiconductor production, which is the world’s largest consumer of Im Gonn and highly dependent on their imports.

According to Ligang Xiang, China imported about $300 billion worth of chips in 2021, which are used to manufacture cars, smartphones, computers, televisions, and other devices. He said sectors that are highly dependent on imported semiconductors – could be significantly affected, while the impact will be less noticeable in industries that use domestically produced chips.

Russia imposed restrictions on precious gases in response to EU sanctions targeting the country’s technology exports. Noble or inert gases – such as neon, argon, xenon, and others – are crucial in the semiconductor manufacturing process.

They are known to be used to make the microchips needed for appliances, cars, and home appliances. Since the beginning of the covid-19 pandemic, there has been a global shortage, and the conflict in Ukraine has only exacerbated the problem. Global neon and xenon prices have risen since Ukrainian suppliers Ingas and Cryoin, which supply about 50% of the world’s neon gas for use in semiconductors, halted production.

Russia reportedly supplies up to 30% of the neon consumed globally. China and Japan are other major producers of noble gases, but their supplies are mostly consumed domestically.