By Mohamed Maher    2 minutes read

Two Ukrainian companies, Ingas and Cryoin, which are major suppliers of neon, have stopped their production. These two companies produce about half of the world’s supply of the main component for the manufacture of electronic chips. The two companies stopped operations after Moscow intensified its assault on the country, threatening prices hike and deepens the already existed shortage of semiconductors.

Both companies together produce roughly 45% to 54% of the world’s semiconductor neon, which is a main component for lasers used to make chips, these calculations are based on figures from the market research firm Techcet.

The consumption of neon for the production of chips, globally, was around 540 metric tons last year, accorfing to Techcet estimates.

This shutdown negatively affects global production of chips, which is already in short supply after Covid-19 pandemic increased demand on mobile phones, and laptops – due to the lock downs and “work from home” – and later cars, forcing some companies to reduce production.