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Chipmakers downplays fear that Russia- Ukraine war will worsen shortages

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With the semiconductor industry affected by the pandemic and with an unprecedented surge in demand, chipmakers had a reassuring message on Thursday-the Russia Ukraine war is unlikely to make shortages worse. Russia is a small market and its Ukraine invasion will not affect chip supply, the Semi Conductor Industry
Association said on Thursday.

SIA Chief Executive Officer John Neuffer said, “While the impact could be significant, Russia is not a direct consumer of semiconductors, accounting to less than 0.1% of global chip purchases”. Ukraine’s status as a major producer of neon has sparked concerns as the gas is used in semi conductor manufacturing.

“We do not anticipate any impact on our supply chain”, Intel said. “Our strategy of having a diverse, global supply chain minimizes our risk of potential local interruptions”. Global Foundries INC, US’s largest provider of outsourced chip making said that having multiple plants around the globe helps to mitigate risk. It has factories in New York, Singapore, Dresden, Germany. “We are not totally immune to global shortages, but our footprint provides us with more insulation”, said an
Executive from the company.