The price of neon, a noble gas needed for lasers in chip manufacture, increased sixfold between December 2021 and March 2022 due to the COVID-19 pandemic and war in Ukraine. The supply of neon was severely constrained by the 2022 Russian invasion of Ukraine, sparking fears that the conflict could worsen the chip shortage. Ukraine produces about half of the global neon supply as a byproduct of the Russian steel industry, and 90% of the semiconductor-grade neon used in the United States. Semiconductor manufacturers have searched for alternative suppliers, such as noble-gas manufacturers in China, but any new supplier would take at least nine months to increase production. The supply of krypton and xenon, of which Ukraine is also a major exporter, was affected as well.
