Did the Russia-Ukraine crisis cause a supply cut for semiconductor neon? UMC: We have alternative sources

According to Taiwanese media reports, the market is worried that the Russia-Ukraine war will impact the supply of neon gas, a raw material for semiconductors. Taiwan's UMC said that even if there is a shortage of supply in Ukraine, it can find alternative sources in Taiwan.

UMC spokesman Liu Qidong said yesterday that although UMC uses neon gas from Ukraine, UMC always maintains multiple sources of suppliers, not just a single source. Even if there is a shortage of neon gas in Ukraine, UMC can find alternative sources in Taiwan.

Ukraine is a major supplier of semiconductor raw material gases, including neon, argon, krypton, xenon, etc., of which neon is supplied by Ukraine, accounting for nearly 70% of the global production. Previously, a South Korean financial institution published a research report pointing out that the outbreak of conflict between Russia and Ukraine would disrupt the production of inert gases such as neon, argon and krypton, and impact the supply and demand of semiconductors, just as when Russia annexed the Crimean Peninsula in 2014, the price of neon soared by more than 10 times.

The TrendForce report shows that although the conflict between Ukraine and Russia may impact the supply of inert gases, as semiconductor factories and gas supply plants have inventory and there is still supply from other regions, it will not cause production line disruptions and affect output in the short term. However, a reduction in gas supply may still cause prices to rise.