The armed conflict between Ukraine and Russia may have repercussions for the tech sector. Here are which ones.
A motherboard for illustration // Source: Photo by Living Smarter on Unsplash
The war. This is the dreaded scenario looming between Moscow and Kiev. Russian President Vladimir Putin has declared that he recognizes the independence of the separatist regions in eastern Ukraine before launching a major military operation there. In the opposite camp, we denounce an invasion and Europe promises sanctions. Europe is heading towards a deep crisis.
The subject is therefore serious and, on the spot, thousands of lives are at stake. However, through the sometimes complex workings of geopolitics, the conflict between Ukraine and Russia can have consequences for the whole world, particularly at the economic. One thinks above all of the energy dependence of the Old Continent on Russian gas pipelines. At the same time, the tech sector is also concerned.
Ukraine and Russia, two supplier countries
Thereby, Reuters points out that Ukraine supplies the United States with more than 90% of the neon used in the production of semiconductors. It is an essential gas for the lasers used in the manufacture of electronic device chips.
As for Russia, it produces 35% of American palladium according to research firm Techcet. It is a rare metal used, among other things, in sensors and memory chips. ” Chipmakers aren’t feeling a direct impact, but companies that supply them with materials to make semiconductors are buying gases, including neon and palladium, from Russia and Ukraine“, explains toReutersspeaking on condition of anonymity, a Japanese industry source.
This evokes an already limited availability for these materials, “so any additional pressure on supply could push prices up. This in turn could affect chip prices“.
The experience of scarcity
However, who says rise in the price of supply, also often says rise in prices for the consumer at the end of the chain. Nevertheless, since the global shortage of components that marked the year 2021, market players are better prepared.
Thus, the ASML company, supplying TSMC, Samsung or even Intel, indicated that it was exploring ways to diversify its sources of supply for neon. For their part, the United States encourages all manufacturers to do the same. This would potentially leave Washington and its allies more freedom to impose truly binding sanctions on the Kremlin.
In short, the impact of the war in Ukraine should not immediately affect the new technologies sector, but the future is uncertain. These issues also risk intensifying an already tense conflict. Let us recall that we are witnessing the beginning of a war that is a priori set to last.
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