Will the U.S. chip industry get stuck?Fear of Russia cutting off supplies?

2022-06-16 0 By

The White House has warned the U.S. chip industry to diversify its supply chain to prevent Russia from “retaliating” against U.S. export controls that would deny U.S. companies access to key raw materials for making chips, sources familiar with the matter said.In the past, the U.S. has cut off supply to other countries’ chip industries. Is it true that the U.S. chip industry is afraid of being cut off by Russia?Nor can It be said that Russia cannot cut off supplies to the US chip industry.In the chip industry, Russia has its place, mainly because Russia controls the raw materials used in chips.A U.S. market research institute has reported that many semiconductor manufacturers rely on materials from Russia and Ukraine, such as neon and palladium.The agency estimates that more than 90% of U.S. supply of semiconductor-grade neon comes from Ukraine, and 35% of palladium comes from Russia.Norilsk Nickel is the world’s largest producer of palladium, with Russia accounting for about 40 percent of global palladium reserves.Most of the palladium produced in Russia will be exported because there is little domestic demand for the metal.Because of Russian restrictions on palladium production.Palladium is difficult to develop because deposits can be 2,000 meters underground and the ore must be refined and processed to produce palladium that can be bought and sold.Conversely, is Russia worried that the United States will cut off its chip supply?Russia’s chip technology is not developed, Russia’s economic development in recent years is not good, Russia in the chip field is basically a blank.In recent years, Russia developed an excited crystal oscillator through analog circuits, relying on this technology to get rid of the technical restrictions of the United States, and can completely replace the role of chips.Therefore, compared with China, there is no large chip manufacturing company in Russia, and PC, mobile phone, automobile and other industries that need chips in large quantities are underdeveloped. Therefore, Russia’s demand for chips is not as big as China’s, so Russia is not very afraid of the United States cutting off its chip supply.