Ukraine halts half of world's neon output for chips, clouding outlook

Ukrainian neon is a byproduct of Russian steel manufacturing

Ukraine’s two leading suppliers of neon, which produce about half the world’s supply of the key ingredient for making chips, have halted their operations as Moscow has sharpened its attack on the country, threatening to raise prices and aggravate the semiconductor shortage.

Some 45 per cent-54 per cent of the world’s semiconductor grade neon, critical for the lasers used to make chips, comes from two Ukrainian companies, Ingas and Cryoin, according to Reuters calculations based on figures from the firms and market research firm Techcet. Global neon consumption for chip production reached about 540 metric tons last year, Techcet estimates.