Chip shortage crisis amid Russia-Ukraine conflict
Recently, Moody’s has warned that the crisis of chip shortage could worsen due to Russia-Ukraine conflict. Semiconductor chip supplies may be affected due to the Russia-Ukraine conflict. Chip supplies have already been disrupted due to the COVID-19 global pandemic.
- Russia accounts for 44% of the global Palladium supply. Ukraine, on the other hand, provides 70% of the global supply of neon. Both of these are the major raw materials for making semiconductor chips. Ukraine also supplies rarefied gases used for the production of semiconductor fabricating lasers.
- The sale of laptops increased due to the lockdown and people staying in their homes during this period. Due to this, the crisis of chip shortage was further aggravated.
- Semiconductor chips are materials whose electrical conductivity is higher than that of an insulator but less than that of a pure conductor. These can be classified into several categories including memory chips, microprocessors and integrated chips (IC). These act as the flmy brains for most modern electronics devices.
- They are widely used in industries like vehicle manufacturing, electronics (TVs, smartphones, computers etc.), data centers etc.
Initiatives taken for manufacturing of semiconductors or semiconductors in India:
India Semiconductor Mission:
It aims to initiate long-term strategies to develop a sustainable system of production of semiconductors and displays.
Production Linked Incentive (PLI) Scheme:
Under this, an investment of Rs 76,000 crore will be made for semiconductor and display board production in the next 5-6 years.
Source – The Hindu
