According to Reuters, due to the continuous tension between Russia and Ukraine, two major neon suppliers in Ukraine have stopped operation, and their neon production accounts for about half of the global supply. Neon is a key raw material for making chips, and the shutdown of the two companies could lead to higher prices and exacerbate the shortage of semiconductors.
Based on the data of the two companies and market research company techcet, about 45% - 54% of the world's semiconductor grade neon is supplied by Ukraine's inGas and cryoin companies. Techcet estimates that the global consumption of neon used in chip production last year was about 540 metric tons.
Angelo Zino, an analyst at CFRA, said that although estimates of neon inventories held by chip manufacturers vary widely, chip production could be hit if the conflict continues.
"This means that many manufacturers will not be able to lock in further orders for other key products in the global supply chain before April," he said.
Neon is an inert gas necessary for the light source generated in DUV / EUV lithography. Its tight supply may affect many downstream industries.
Toshiba said on March 7 that the supply challenge of electronic components is unlikely to be alleviated in the next year, and the outbreak of the conflict between Russia and Ukraine may further deepen the core shortage crisis that has lasted for more than a year. "The sense of shortage has not improved at all," Hiroyuki Sato, head of Toshiba's equipment department, said in an interview. "We expect that the current tight supply will continue until at least March next year."
Another analyst said that the conflict between Russia and Ukraine could reduce global auto production by about 1.5 million this year. Some analysts are more pessimistic and believe that the number of car production cuts will reach 3 million this year.
It is understood that China's rare gas head manufacturers include WISCO, Shougang, Baosteel, Handan Iron and steel, Quzhou Hangyang, Panzhihua Iron and steel Meisel, etc. Industry analysts said that due to the problem of raw materials, the main enterprises are underemployed and can not meet the market demand at present. The gas used in semiconductor applications requires high purity, generally 5N. Downstream customers mainly include large semiconductor factories such as Kaixia, SK Hynix and Changjiang storage.
Previously, many industrial chain companies have responded publicly, trying to dispel the market's concerns about the tight supply of neon.
On February 26, EFC issued a statement saying that the company has prepared sufficient annual inventory for 2022 and has qualified second and third material suppliers.
The Taiwan power plant of China's wafer fab also said that neon gas would be used only in parts of the process requiring laser. The amount of consumption would be less. A small bottle could be used for one to two months. At present, the company's stock is six to nine months.
Coincidentally, according to Reuters, less than 20% of the neon used by ASML comes from Ukraine, and the company is actively looking for multiple supply channels.
Guangdong Huate Gas Co.Ltd(688268) also said that at present, it has sufficient inventory for half a year and has sufficient reserves. Even in extreme cases, China has enough gas supply as a supplement.
