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Mahesh

24/08/22 08:20 AM IST

Russia-Ukraine war to further worsen global chip shortage crisis

In News 
  • Russia-Ukrain war has exacerbated ( shortage already existed after COVID induced shutdown) the chip crisis as the supply of key ingredients such as Palladium and Neon has been affected.
Palladium
  • Palladium is a rare and lustrous silvery-white metal discovered in 1803.
  • Uses: It is used in fuel cells, catalytic converters ( to clean toxic gas from the exhaust of the vehicle), in the semiconductor industry and in jewellery and dental fillings.
  • Palladium is often used as an alternative to gold in making various devices as the metal is highly malleable and resistant to corrosion.
  • Palladium is used in nearly all electronic devices, and the metal is a key to make chipsets and circuit boards. It is used to make Multi-Layer Ceramic Capacitors (MLCCs), which are important to make smartphone screens, stereo systems, and power circuit breakers.
  • The rare metal is considered to be softer than gold, but is still much harder and durable than the yellow metal.
  • Russia controls 44% of global palladium
Neon
  • Neon is a colourless, odourless, inert gas with about two-thirds the density of air.
  • Uses: It is used to make high-voltage indicators and switching gear, making chips, lightning arresters, diving equipment, cryogenic refrigerants (in liquid form) and lasers.
  • Ukraine supplies 70% of neon supplies
Present status
  • Russia controls 12 per cent of the global crude oil production, 17 per cent of natural gas, 5.2 per cent of coal, 4.3 per cent of copper, 6.1 per cent each of aluminium and nickel, 15 per cent of zinc, 9.5 per cent of gold, 5.4 per cent of silver, 14 per cent of platinum, 44 per cent of palladium and 11 per cent of wheat.
  • On the other hand, Ukraine meets as much as 70 per cent of the global neon demand.
  • During the 2014-15 Russia-Ukraine war, neon prices went up by several times, indicating how serious this can be for the semiconductor industry.
Source- Indian Express 

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