Chennai: The ongoing crisis in the country Ukraine This could further exacerbate the semiconductor shortage that the auto industry is currently grappling with. According to auto consultants and experts, both Russia and Ukraine supply the raw materials used in semiconductor chip manufacturing and, with the current geopolitical situation there, the sourcing link would be seriously at risk. Result: Longer waiting times for vehicles and rising prices as Original Equipment Manufacturers (OEMs) seek alternative sourcing arrangements.
ICRA VP & Sector Head Rohan Kanwar Gupta Said, “The impact (of the war) will stem from issues with semiconductor chip production, as both Russia and Ukraine are suppliers of components used in their manufacture. Ukraine is an important source and supplier of raw materials, such as those used in its manufacturing.” Semiconductor-grade neon is used, and Russia is a major source of palladium used in memory and sensor chips. Thus, a prolonged war could affect chip supply and production levels in all regions. could disrupt it,” he said.
How important are Russia and Ukraine as sourcing hubs? CRISIL Research Director Hemal Thakkari said, “Russia is probably the largest producer of palladium (more than 40% of global mine production), which along with many other rare-earth metals is essential for memory and sensor chips. Ukraine is a major producer and exporter of neon gas. It is used for a number of processes in the manufacturing of semiconductors such as etching circuit design into silicon wafers to make chips. The immediate hit would be for the US due to its reliance on supply.
“Ukraine supplies a large proportion of America’s semiconductor-grade neon gas, which is integral in the chip-making process, while Russia supplies about a third of America’s supply of palladium, a rare metal used to make semiconductors. can be done,” he said. Thakkar. China is the next largest supplier of neon gas. Nor will the pinch be in petrol and diesel vehicles alone. Jato Dynamics President Ravi Bhatia “The automotive sector in some parts of the world is heavily dependent on rare gases such as neon, krypton and xenon supplied by Ukraine,” it said.
ICRA VP & Sector Head Rohan Kanwar Gupta Said, “The impact (of the war) will stem from issues with semiconductor chip production, as both Russia and Ukraine are suppliers of components used in their manufacture. Ukraine is an important source and supplier of raw materials, such as those used in its manufacturing.” Semiconductor-grade neon is used, and Russia is a major source of palladium used in memory and sensor chips. Thus, a prolonged war could affect chip supply and production levels in all regions. could disrupt it,” he said.
How important are Russia and Ukraine as sourcing hubs? CRISIL Research Director Hemal Thakkari said, “Russia is probably the largest producer of palladium (more than 40% of global mine production), which along with many other rare-earth metals is essential for memory and sensor chips. Ukraine is a major producer and exporter of neon gas. It is used for a number of processes in the manufacturing of semiconductors such as etching circuit design into silicon wafers to make chips. The immediate hit would be for the US due to its reliance on supply.
“Ukraine supplies a large proportion of America’s semiconductor-grade neon gas, which is integral in the chip-making process, while Russia supplies about a third of America’s supply of palladium, a rare metal used to make semiconductors. can be done,” he said. Thakkar. China is the next largest supplier of neon gas. Nor will the pinch be in petrol and diesel vehicles alone. Jato Dynamics President Ravi Bhatia “The automotive sector in some parts of the world is heavily dependent on rare gases such as neon, krypton and xenon supplied by Ukraine,” it said.