Ukraine war will hurt computer hardware supply chains

Chip manufacturers are facing a shortage of raw materials if the conflict in Ukraine becomes prolonged.

Ukraine supplies over 50% of the world's neon gas, which is used in the production of semiconductors.

The industry was already experiencing a semiconductor shortage as a result of the pandemic, which had been predicted to recover in 2022. An extended war in Ukraine will delay that recovery significantly.

To make matters worse, palladium is also used to make computer chips. It's biggest exporter? Russia. While sanctions continue manufacturers will struggle to meet demand without it.

Given that computer chips are now being used in everything from cars to fridges, disruptions to this supply chain in particular are likely to have severe and wide-reaching consequences.

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