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Russia-Ukraine conflict will lead to chips costing 600% more: here's why

In the last period the question of the conflict between Russia e Ukraine it's all over the news. The reasons are different and the tension is sky high. The United States is ready and the other side, Putin, is waiting for a false step to enter Ukraine. But beyond the political question, there is a "technological implication”That users may not know. The cost of the chips used for smartphones, tablets, cars and all kinds of technology could, in the event of a concrete conflict, increase by 600%. Let's go and see the reasons together.

Beyond the political discourse, the crisis between Russia and Ukraine will lead the chips to increase their price by 600%. We explain why

According to what we read from Reuters, conflict between Russia and Ukraine it would lead to a considerable slowdown in the production of Russian, Ukrainian and US factories. This would not aggravate poco la chip crisis which by now, for more than a year, has not allowed companies to keep up with market demands. This would clearly result in a price increase, as the manufacturing companies would have more demand. In addition to the production, the supply of each country would also be affected.

russia-ukraine: conflict leads to increased chip cost

But in addition to manufacturing the chips itself and storage, another fundamental problem is the production of materials raw materials used for chips. As we read about TomsHardware, 90% of stocks of neon used by the chips in question comes from Ukraine. In addition to this, 35% of the palladium imported to the United States comes from Russia.

Meanwhile, as we read on Reuters, it seems that the United States is standing finding alternatives to the production and buyers of these raw materials. Specifically, neon would be a key element since almost all of it comes from Ukraine. But having said that, if the United States found a solution, it is good that production would slow down, yes, but it would not stop. However, as we said in the introduction, a 600% price increase.

Gianluca Cobucci
Gianluca Cobucci

Passionate about code, languages ​​and languages, man-machine interfaces. All that is technological evolution is of interest to me. I try to divulge my passion with the utmost clarity, relying on reliable sources and not "on the first pass".

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