RIO DE JANEIRO, BRAZIL – With Intel, Samsung, TSMC, and Qualcomm exiting the Russian market after the United States, the United Kingdom, and the European Union imposed export controls on chips manufactured or designed in the United States or Europe, the Russians are responding accordingly.
Until at least December 31 of this year, the export of noble gases requires a special permit from the Russian government.”We believe that we will have the opportunity to make our voice heard in this global chain. This will give us a competitive advantage when necessary to conduct mutually beneficial negotiations with our counterparts,” Russian Deputy Trade Minister Vasily Shpak told Reuters on Thursday.
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With Russia responsible for about one-third of global production of the noble gases neon, krypton, and xenon, Ukraine’s two noble gas producers, Ingas and Cryoin in the Donbas, shutting down production in March due to the war, and global supplies are getting tighter.
These produced about half of the world’s demand for neon. Neon is used, for example, in lasers during lithography, part of the chipmaking process in which patterns are burned into silicon.
The Russian move promises to prolong a global semiconductor supply crisis that is already wreaking havoc on many industries that use the increasingly ubiquitous chips.
Taiwan – the leading producer of chips in general and of 92% of the most advanced chips – has also curtailed its exports to Russia and may now quite strongly expect to face severely curtailed supplies of noble gases in return.
It is becoming increasingly clear that the sanctions against Russia are backfiring on Western economies like a boomerang. The bear has been cornered and is now striking back – with dire consequences for the people and businesses in Europe who are suffering under the sanctions imposed by their politicians.