Ukrainian companies stop supplying neon to the semiconductor industry

These are specifically the Ukrainian companies Ingas and Cryoin, which stopped the supply of high-purity neon, for which the American Micron and certainly other companies began to prepare in February. According to an older report, American semiconductor companies in particular were to purchase about 90% of neon from Ukrainians, while they use by-products of the Russian steel industry in its production. It is thus clear that in such a case it was possible to expect a cessation of supply, which has now happened and will result in an increase in the prices of pure neon on the market.

Ingas a Cryoin totiž dle THW they supplied about half of the world’s high-purity neon needed. Cryoin before the war it produced between 10,000 and 15,000 m every month3 neon in the quality referred to as Grade 5.0, which means 99.999% purity, then Grade 5.5 (99.9995%) and also Grade 6.0 (99.9999%). It was 120,000 to 180,000 m per year3. The lowest quality is sufficient for the purposes of the semiconductor industry or healthcare (equipment for laser eye surgery) and the highest quality is needed especially in research institutes.

Company Ingas had an even larger ascent, between 15,000 and 20,000 m3 neon in Grade 5.0 and 6.0 quality, while its capacities served mainly chip manufacturers from around the world, to which Ingas supplied 75% of its neon.

Both of these companies are located in cities that are directly at the heart of the ongoing fighting. Cryoin is located in Odessa and Ingas in Mariupol, so it is no wonder that Cryoin has not been producing since the first days of the invasion, and will not meet the March deliveries. Moreover, this company has no idea how it could get to the necessary material from which neon is made, even if the fighting suddenly stopped.

According to the local ministry, Taiwanese companies such as TSMC and UMC have sufficient stocks of neon, which has not been specified, and as we already know, the American Micron has previously decided to request neon elsewhere, which also applies to Intel and GlobalFoundries. The problem may arise when stocks run out and companies fail to secure supplies elsewhere, in which case there may be further production problems.

Now other producers of pure neon are trying to increase production, but even so, according to Cryoin, its price has risen about sixfold since December. Moreover, it is not just about neon, but also other elements and especially metals (aluminum, nickel, gold, tin or palladium), whose prices are increased by Russia’s isolation or rising energy prices.

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Source: Svět hardware by

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