As tensions between Ukraine and Russia escalated, the big brother, the United States, stepped in to warn Russia that if it invaded Ukraine, it would impose economic sanctions on the country; but Russia is not a fuel-efficient lamp. According to a report by the market research agency TECHCET, Russia It is possible to retaliate against the United States by interrupting key raw materials for chips; if Russia does interrupt the supply of key raw materials, the global chip supply chain may be further tightened.
The TECHCET report shows that many semiconductor manufacturers in the United States rely on special raw materials such as C4F6 (hexafluorobutadiene), neon, and palladium produced in Russia and Ukraine; 35% of the palladium comes from Russia.
In addition, Russia is the main supplier of C4F6, and most advanced processes have to rely on C4F6 for etching; in the US market alone, 8 tons of C4F6 have to be consumed every year.
The TECHCET report pointed out that neon plays an important role in wafer etching lasers; while the sources of neon required by U.S. semiconductor factories almost come from Ukraine and Russia, neon is a by-product of Russian steel manufacturing, and neon produced in Russia will Sent to a professional company in Ukraine for purification. As for palladium, it is the main raw material used in the production of sensors and MRAM memory.
If the conflict between Ukraine and Russia escalates, or the United States imposes more sanctions on Russia, will Russia retaliate by interrupting semiconductor raw materials? Lita Shon Roy, CEO of TECHCET, believes that the answer is absolutely yes. First, after the Ukraine-Russia conflict, the supply of semiconductor raw materials from Ukraine will definitely be blocked directly; second, the export of C4F6 and palladium directly from Russia will also be affected. Immediate impact, and Russia will definitely use this as a bargaining chip to counter economic sanctions.