In the light of Russia’s invasion of Ukraine, the semiconductor industry has joined a collective group of groups proclaiming no business with Russia. The PHLX Semiconductor Index SOX Although depressed after the announcement, recent reports reveal that Russia is not a big player in this area.
Russia is the semiconductor industry association Less than 0.1 percent For purchasing global chips. In 2021, Russia’s broader information and communication technology (ICT) market totaled approximately $ 50.3 billion. this is, International Data Corporation (IDC)..
For Ukraine, one of the potential concerns is neon. Above all, Ukraine plays a role in purifying neon and sending it to semiconductor producers. Neon is an important part of the manufacturing process and is made up of a number of components that are collectively used in the manufacture of semiconductors.
For now, people in need of neon may not encounter further shortages or delays, according to Stacey Lasgon, Managing Director and Senior Analyst for Semiconductors and Semiconductor Capital Equipment in the United States. Bernstein Research..
“If the producer has a stockpile, it will be okay for a while,” he told the Epoch Times. He added that if the conflict in Ukraine lasts for another six months or a year, the neon supply chain could become tighter.
Imbalance between supply and demand
The semiconductor industry is the first $ 300 billion Hovered around that number in 2010, and until 2017 when it exceeded $ 400 billion.. It remained in the stadium for the next few years.Then it soared in 2021 $ 583.5 billionMainly due to the inflow of demand.
In 2020, at the onset of COVID-19, the turmoil led to a cataclysmic change in the semiconductor industry, and increased demand delayed order processing.The car maker had to do Pause production They were waiting for the semiconductor shipment to arrive at the factory door. game machine It’s harder to find like Nintendo Switch, PlayStation 5, Xbox Series X | S. The The same shortage story It was active in other fields that depend on semiconductors, such as home appliances, smartphones, and televisions.
For both manufacturers and consumers, figuring out when supply and demand will be in equilibrium will be a long-awaited game.
“If you think of the semiconductor industry as a pipeline of commodities, the pipeline was exhausted,” explained Stavros Kalafatis, a professor of electrical and computer engineering. Texas A & M University.. “There will be a delay in filling the pipeline before we can achieve productive and rapid order returns and increased offers. We are still in the process of filling that pipeline.”
These steps are time consuming and while the car manufacturer is producing the vehicle, Production rate It has not reached the pre-pandemic level. Secondhand carAn alternative for those who are looking for a new car but can’t find one is still at a high price.
Semiconductor delays raise concerns for some investors, but there are other implications that may be felt on a larger scale in connection with the war between Russia and Ukraine.In addition to being a major oil and gas supplier, Russia The largest exporter of wheat It accounts for more than 18 percent of the world’s and international wheat exports.
“Sanctions and ongoing disputes make it very difficult for U.S. and European Union investors and companies to do business with Russian investors,” said Reidel Law Firm, a Texas-based lawyer. Founder Schuyler “Rocky” Reidel told the era Jiho. .. “They send and collect funds with Russia, taking into account the sanctions of the United States and the European Union and the counter-limits that Russia imposes on foreign-owned securities and payments to the parties of the United States and the European Union. You may already be aware that you are not allowed to do so. “
According to Reidel, these difficulties have the potential impact of Russian banks, foreign investors and companies lending from banks unable to repay their debt and contractually defaulting. It imposes various risks such as. “They risk losing access to international capital in the future, and even the bankruptcy proceedings of real estate and collateral outside Russia.”
According to Leidel, if the conflict continues, Russian companies may consider restructuring their supply chains and capital markets to avoid the United States and Western Europe. However, this process can take years and comes with a lot of complexity. “Most of Asia and Latin America remain neutral and choose not to impose sanctions on Russia at this time, so Russian companies and markets could shift their focus to Asia and Latin America for trade and capital. It’s expensive, “he said.
Meanwhile, semiconductor companies and other industries may likewise suspend exchanges with Russia indefinitely to keep an eye on what’s next. In addition to withdrawing investments and transactions, Reidel sees a very hesitant approach to investing or expanding in Russia in the future.
“This will cause unfortunate damage to Russian US companies and investors, Russian companies, and the Russian people,” he said.