https://techmonitor.ai/silicon/chip-industry-russia-ukraine-war-neon

The impact of Russia’s war with Ukraine for the semiconductor industry was brought into focus on Thursday when South Korea’s government removed import tariffs on three gasses which are vital to chip production to protect supply. It is the latest move taken by businesses and governments to head off issues caused by the conflict. Despite bullish talk from industry insiders that they are well-placed to cope with any disruption, the long-term impact of the war on the sector remains uncertain.

South Korea is a hub for semiconductor production and home to the world’s second-largest contract chip manufacturer, Samsung, as well as major suppliers of memory chips such as SK Hynix. From next month, it will remove the current 5.5% import charge applied to neon, xenon and krypton, three gases used in the production of advanced chips. South Korea relies on imports of these gases from Russia and Ukraine, but the conflict and accompanying sanctions on Russia have cut off its supply.