The conflict between Russia and Ukraine has prompted ASML to look out for alternative sources of neon gas, Reuters reports. ASML receives less than 20 percent of its neon requirements from those countries, a company spokesperson told the news agency. ASML contacted Bits&Chips to add that it “doesn’t use a lot” of the gas.
According to Trendforce, Ukraine is a major supplier of raw material gases for semiconductor manufacturing including neon, argon, krypton and xenon. Nonetheless, the market research firm doesn’t expect the conflict, which escalated into an invasion on Wednesday night, to halt chip production lines in the short term since fabs and gas suppliers are stocked and alternative sources are still available. Many companies started diversifying away from Russia and Ukraine after Moscow annexed Crimea in 2014, which triggered a huge increase in neon prices.