{"id":19901,"date":"2022-03-22T10:31:28","date_gmt":"2022-03-22T14:31:28","guid":{"rendered":"https:\/\/a2globalelectronics.com\/?p=19901"},"modified":"2022-03-22T11:01:09","modified_gmt":"2022-03-22T15:01:09","slug":"global-politics-and-the-semiconductor-supply-chain-collide","status":"publish","type":"post","link":"https:\/\/a2globalelectronics.com\/ja\/global-sourcing\/global-politics-and-the-semiconductor-supply-chain-collide\/","title":{"rendered":"UNCERTAIN TIMES: WHEN GLOBAL POLITICS AND THE SEMICONDUCTOR SUPPLY CHAIN COLLIDE"},"content":{"rendered":"

Three predictions about global politics and the semiconductor supply chain in the wake of Russia\u2019s invasion of Ukraine.<\/h2>\n\n\n\n

We\u2019ve written before<\/a> how global politics can significantly impact supply chains. We know that recent world events have influenced many countries to enact protectionist policies<\/a>, which can create a ripple effect far beyond their intended consequences. With Russia\u2019s invasion of Ukraine, we are again seeing the impact of global politics and the semiconductor supply chain<\/a>.<\/p>\n\n\n\n

Many nations have imposed economic sanctions on Russia in response to the invasion. While an effective political tactic, there are consequences for the semiconductor supply chain \u2014 for one, making scarce the natural resources necessary for semiconductor manufacturing. We want to address two questions here: 1) How is Russia\u2019s invasion of Ukraine impacting the semiconductor market? 2) And, more importantly, how can you navigate resulting supply challenges?<\/p>\n\n\n\n

3 Predictions about Global Politics and the Semiconductor Supply Chain<\/h2>\n\n\n\n

1)\u00a0\u00a0\u00a0 Global supplies of palladium and neon gas<\/a> will drop.<\/h3>\n\n\n\n

This region is a major supplier of several of the natural resources for manufacturing semiconductors. For example, Russia exports 37% of the world\u2019s palladium supply. In response to the uncertainty following the invasion, global palladium prices are now reaching record highs<\/a>, up over 80% in value this year.<\/p>\n\n\n\n

Global supplies of neon gas \u2014 critical to the lasers that make chips \u2014 face serious shortages as well. The two Ukrainian companies that produce 45-54% of semiconductor-grade neon<\/a>, Ingas and Cryoin, have shuttered operations in the wake of escalating attacks. China also produces neon gas, which is a byproduct of steel manufacturing. But, Chinese prices are rising exponentially, already having quadrupled from 400 yuan\/cubic meter in October 2021 to more than 1,600 yuan\/cubic meter in late February.<\/p>\n\n\n\n

While large semiconductor fabs like TSMC, Intel, and Samsung have safety inventories and buying power to ride out resource shortages, further shortages and price hikes will compound the issue of supply availability that smaller chip manufacturers are facing. This will further aggravate global semiconductor shortages<\/p>\n\n\n\n

2)    Chipmakers will take to shortage planning and stockpiling inspired by past conflicts.<\/h3>\n\n\n\n

This isn\u2019t the first time shortages in raw material imports from Russia have had worldwide ramifications. We can examine past shortages brought on by Russian military activity for some indication of what may lie ahead.<\/p>\n\n\n\n

The Crimean invasion in 2014 resulted in sanctions against Russia that reverberated to Ukrainian supply chains. This caused soaring prices on gases and metals from Russia and Ukraine, impacting the global semiconductor market. <\/p>\n\n\n\n

The events in 2014, as well as in more recent years, have prompted strategic moves by some semiconductor manufacturers to stockpile critical raw materials and diversify their supply chains. These strategic moves act as a counterbalance to the uncertainties of global politics and the semiconductor supply chain. They provide stability in the short term but are finite and won\u2019t protect against long-term price increases due to raw materials in short supply.<\/p>\n\n\n\n

3)    U.S. chipmakers will take the initial hit, with limited impacts in Asia \u2014 for now.<\/h3>\n\n\n\n

Natural resources shortages may disproportionately impact the United States semiconductor market. The <\/a>Wall<\/a> Street Journal<\/a> reports that: \u201cU.S. semiconductor makers import neon gas, the chemical compound hexafluorocyclobutene, and palladium, which are used to make chips, almost entirely from Russia and Ukraine, according Techcet, a research group that analyzes dependency on critical materials used in manufacturing.\u201d<\/p>\n\n\n\n

For now, these impacts from these raw materials could stay limited to the smaller manufactures that have narrower sourcing options. But longer term, if disruption of natural resources critical for semiconductor manufacturing continues, the impacts will likely extend to the broader semiconductor industry.  <\/p>\n\n\n\n

In the near term, Asia chipmakers may remain largely unaffected due to strategic material stockpiling and diversifying their sources. Reuters<\/em><\/a> has reported that TSMC and other Taiwanese chipmakers use less palladium and have stockpiles of neon and hexafluorocyclobutene. Additionally, Unisem in Malaysia reports no impacts are expected because it sources materials and machinery from other countries. While stockpiles and diversified supply chains may cushion against immediate challenges, if the conflict continues, shortages could spread globally.<\/p>\n\n\n\n

Embracing change when global politics and the semiconductor supply chain collide<\/h3>\n\n\n\n

Manufacturers can take this opportunity to lean into accessing trusted semiconductor sources worldwide. Connecting your needs with immediate availability is more important now than ever before.<\/p>\n\n\n\n

Overall, we are seeing many manufacturers reevaluating existing lean inventory practices. Access to safety stock might just mean the ability to weather the initial shocks when global politics and the semiconductor supply chain collide.<\/p>\n\n\n\n

There are many options to determine if safety stock might work for your organization, and an independent distributor with solutions can offer support in identifying the ideal approach.<\/p>\n\n\n\n

The human toll<\/h3>\n\n\n\n

While our discussion today focused on of the economic impacts of this war, it is important to acknowledge the tragic humanitarian consequences. The economic impacts are widespread, but it is the humanitarian crisis that is of utmost concern to all watching these events unfold.<\/p>\n\n\n\n

 \u8a73\u7d30\u306f\u3053\u3061\u3089<\/strong><\/p>\n\n\n\n