The United States has begun to understand that imposing comprehensive sanctions on Russia is not worth the loss. The consequences of blaming a big resource country are very serious. If it is not done well, it will be difficult for the United States to have a joyous celebration.
The United States and South Korea actively formed a siege against China’s semiconductor industry. AP picture
“Helium balloons, which are lighter than air, are an integral part of nearly every American celebration, but a global shortage of the gas has disrupted many traditional celebrations,” Agence France-Presse reported. Helium balloons, a university American football team has suspended the tradition of releasing red balloons.” The local supplier said that due to the global shortage of helium, a minimum purchase order is now required and can only accept orders for 20 balloons at a time.
A balloon that lifts off is not a big deal, when you know that helium (He) is one of the noble gases, that is, besides helium, there are neon (Ne), argon (Ar), krypton (Kr), xenon (Xe), radon (Rn) ) plus the man-made element (Og), the seriousness of the problem is understood. The Russian Ministry of Industry and Trade recently announced that due to the impact of sanctions from the United States and the West, Russia will limit the export of noble gases by the end of 2022 to strengthen its market position.
The United States cannot raise balloons, nor can semiconductor chips be produced; noble gases are too important for the semiconductor industry. Mainland media said: “Inert gas is an essential material for the production of integrated circuits, flat panel displays, light-emitting diodes, and solar cells. Inert gases are required from chip fabrication to final packaging.” Russia’s neon, krypton, and xenon accounted for 30% of the global supply, and the top priority is neon, one of the most critical components of chips. The semiconductor industry, which produces chips, consumes nearly half of the world’s neon gas production, according to market firm Expert Market Research.
The US and the West do not seem to calculate that the noble gas card is in the hands of Russia. The US thinks that after Japan, South Korea, and Taiwan are taken over, and they form the “Chip 4” together, they will be able to further control the global semiconductor ecosystem and then curb China. With the development of science and technology and the economy, the authorities have exhausted their calculations. Unexpectedly, Russia suddenly announced that before December 31 this year, only special permission from the country can be exported. Then Japan, South Korea, and Taiwan, which followed the United States in imposing sanctions on Russia earlier, will face Russia. reciprocal sanctions against the parties.
Is it possible not to ask Russia? Yes, China is another big producer of noble gases in the world because of its huge steelmaking capacity (the steelmaking process produces noble gases). However, China’s own demand is also huge. If it wants to increase production and export these gases, the price must be much more expensive than that supplied by Russia. This is more than that. Because of the outbreak of the Russian-Ukrainian war, the market crisis has intensified, and the price of neon gas, which is the main demand for semiconductors, has soared. The month-on-month price increase in April more than quadrupled, however, Korean manufacturers are still actively stocking up, mainly importing from China.
According to data from the Korea Semiconductor Industry and the Korea Trade Association, “South Korea imports noble gases mainly from China (66.6%), Ukraine (23%) and Russia (5.3%). Due to the conflict between Russia and Ukraine, South Korea’s neon gas is currently heavily dependent on China. “What about Taiwan, the global supplier of semiconductor chips? The industry said that the impact is somewhat limited, but it is not worried about supply cuts. “But other livelihood and commercial market needs may be delayed because of this. The supply chain of data centers, mobile phones and computers is relatively stable, but automotive and industrial supply chains are relatively stable. The shortage of used chips may intensify.” In short, the most sensitive automobile manufacturing and electronic products in the U.S. economy, excluding military technology facilities, will be more affected by chip shortages in the future.
American football that can’t afford to lift a balloon. AP picture
Perhaps, it may not have any effect on the United States, anyway, it is difficult for the United States to have a celebration worthy of helium balloons. The U.S. sanctions against Russia have caused global inflation to worsen and hit the U.S. economic recovery; it also has to let China bury it coldly and break the new Cold War in the United States. The so-called Chip 4 is unsupportable, unable to do anything against China, and must face the problem of chip material supply. The world has changed, and now it is “neon is a mother”. What is the United States using to attack China? I’m really surprised that you have “neon”!