The COVID-19 pandemic had created major challenges for the semiconductor chip industry leading to a demand-supply imbalance. Governments and companies have been investing heavily to boost chip production worldwide to address the ongoing shortage.
The Semiconductor Industry Association (SIA) announced that the global semiconductor industry’s sales came in at a record high of $555.90 billion in 2021, up 26.2% from the prior year. According to Fortune Business Insights, the global semiconductor market is expected to grow at a CAGR of 8.6% over the next six years to reach $452.25 billion by 2028. However, the hostilities between Ukraine and Russia may create supply disruptions in chip manufacturing in the near term, as Ukraine supplies more than 90% of semiconductor neon to the U.S. In comparison, Russia supplies 35% of palladium used in chip manufacturing.
