The United States announced today that Russia will use its military force in Ukraine, but it will fail again. The Russian ambassador to the European Union said that there will be no use of force in the next month. However, the United States is worried that Russia will retaliate and cut off the supply of semiconductor materials, making American manufacturing even worse.
U.S. President Biden frets over chip supply. (AP picture)
The United States dominates the major patented technologies in the semiconductor industry and controls chip production. In addition to Intel, TSMC and Samsung must obey the United States. However, the semiconductor supply chain is a very complex global collaboration, and some usually inconspicuous key materials, it is not the turn of the United States. Taiwan Central News Agency recently reported that the market research firm Techcet warned that the United States is highly dependent on Russia and Ukraine for palladium (Pd), neon (Ne) and hexafluorobutadiene (C4F6), which are key raw materials for semiconductor manufacturing. Export control may seriously damage the semiconductor industry.
Yang Ruilin, research director of the International Institute of Obstetrics and Gynecology, Taiwan Industrial Research Institute pointed out that palladium is mainly used in the production of storage-type flash memory (NAND Flash), and Russia and Ukraine supply about 30%. However, neon is very important for the laser used in the manufacture of chips. More than 90% of the neon used in the semiconductors comes from Ukraine, and neon is a key material for the lasers required for the chip manufacturing process. Neon is a by-product of Russian-made steel and is mainly sent to Ukraine for refining. These materials are used in both deep ultraviolet (DUV) and extreme ultraviolet (EUV) exposure machines.
In order to create a military conflict between Russia and Ukraine and cause geopolitical instability, the United States attempts to achieve the goal of returning U.S. dollar investment to the United States to relieve high domestic inflation, oppress Russian forces, and drive the EU closer to the United States. The supply of materials in Ukraine is blocked, which is very likely to cause the price of related semiconductor materials to soar.
The head of the White House National Security Council recently approached chip makers to understand the industry’s level of danger to Russian and Ukrainian chip-making materials, and called for alternative sources. The U.S. official said that if Russia does invade Ukraine, the Biden administration is also fully prepared. Some people in the chip industry said that it is estimated that a military conflict broke out between Russia and Ukraine, and the supply of related materials will not be cut off, but the price will rise. The current situation in Ukraine continues to heat up, which has led to a rise in rare gas prices.
The U.S. International Trade Commission (ITC) pointed out that before Russia’s attack on the Crimean Peninsula in 2014, the price of neon gas surged 600% in one go. It is reported that the White House requires the stability of the chip industry and will threaten Russia, saying that once Russia sends troops, the United States may impose a technology embargo on Russia similar to Huawei. However, mentioning the U.S. sanctions against Huawei was counterproductive, and the article analyzed by the Russian Satellite News Agency: “Huawei is aware of the threat of being blocked from obtaining U.S. technology, so it actively increases the purchase of chips for future use, ensuring its production and production of finished products. Maintenance needs. In 2019, before the U.S. sanctions, Huawei purchased $23.45 billion worth of chips, a year-on-year increase of 73%.” Coupled with the outbreak of the new crown pandemic in 2020, the remote working mode has greatly increased, resulting in a shortage of computers and computing equipment. , the isolation of the epidemic has led to the suspension of semiconductor production and the interruption of the chip supply chain. All these have led to a global shortage of chips, and the manufacturing of American automobiles and IT products has been hit by unforeseen impacts.
In contrast, China’s chip manufacturing industry, which mainly produces low-end chips that are not affected by U.S. sanctions, has increased orders amid global shortages. 33%, reaching 359.4 billion pieces.” More importantly, China has accelerated the pace of independent research and development of domestic chips. The US semiconductor industry pointed out that China launched 28 new projects last year and established its own production facilities. The momentum is forecast to continue, with China becoming the world’s third-largest chip supplier in two years’ time.
After reading the above reports, let’s make a summary: the United States is already powerless, even semiconductors can’t cover it, and the end of technological hegemony is just around the corner.
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