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Putin could kill US chip industry

by on15 February 2022

White House has new Ukraine scare story

Not content with shuttering Chinese chip making, the White House is warning the chip industry to diversify its supply chain in case Russia retaliates against threatened US export curbs by blocking access to key materials.

While it seems unlikely, the scare story came after Techcet, a market research group, published a report on February 1 highlighting the reliance of many semiconductor manufacturers on Russian and Ukrainian-sourced materials like neon, palladium and others.

Techcet estimated, more than 90 per cent of US semiconductor-grade neon supplies come from Ukraine, while 35 per cent of U.S. palladium is sourced from Russia.

Peter Harrell, who sits on the White House's National Security Council, and his staff have been in touch with members of the chip industry in recent days, learning about their exposure to Russian and Ukrainian chipmaking materials and urging them to find alternative sources, the people said.

A "senior official" told Reuters, "We understand that other sources of key products are available and stand ready to work with our companies to help them identify and diversify their supplies."


Last modified on 15 February 2022
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