Among the biggest concerns are supplies of several industrial gases used in semiconductor lithography, the process of etching silicon wafers to turn them into computer chips. These include a gas known as C4F6, which is used in many of the most advanced chipmaking processes, as well as neon and helium.
Many of these gases are produced as a byproduct of Russian steel production, but then refined by specialized Ukrainian firms for use by semiconductor manufacturers. Owing to the cross-border nature of this trade, any war between Russian and Ukraine will almost certainly disrupt supplies.
The last time Russia invaded Ukraine, in 2014, the price of neon shot up 600%, almost overnight, causing havoc in the semiconductor industry. Since then, chipmakers have tried to diversify the countries from which they purchase the gas. But Ukraine remains a key supplier.
As for palladium, Russia produces more than 45% of the global supply. The price of the metal has already run up substantially, as traders anticipate potential supply disruptions if Russia invades Ukraine and the rest of the world imposes severe economic sanctions on Russia in response. It is currently trading at $2,400 per ounce, having climbed 52% since mid-December.
Sure would be nice to make more of that stuff here.