The Russia-Ukraine war is going to have an impact on the smartphone as well. Smartphones are going to be expensive due to this war. The reason for this is the chip supply being affected. Know how it will affect smartphone companies.
Russia is continuously attacking Ukraine. Ukraine has also announced not to back down. The impact of this war has been on other countries as well. Due to this, the industry which is already facing chip shortage is going to get worse.
Due to this, smartphones can also be expensive. According to the research firm Techcet, let us tell you that Ukraine is a big producer of neon gas. It is used for the laser used to make the chip. This is the U.S. Supplies 90% of semiconductor-grade neon.
The news agency Reuters has told that Russia is the source of 35 percent of Palladium. This rare metal is also used to make semiconductors. The tension between these two will reduce the export of these elements and this will affect big players like Intel. Which you take 50% neon from Eastern Europe.
According to JPMorgan, companies can boost supply by going to China, America and Canada. But, it can be quite slow. Shortage of micro-chip has been a big problem of the year 2021. Some analysts had predicted that this problem would end in 2022.
But, now this does not seem to be possible about this war. The US has said to impose sanctions on Russia, it has also been said that the supply of microchip will be stopped from Russia. But, as mentioned above, Russia-Ukraine is the major supplier of the products used to make microchips.
Chip makers can keep this problem on hold for a week or two. But, if the supply remains stalled for a long time, then its big effect will be seen. This will affect the production of semiconductors. Also, microchip products like smartphones, cars will also become expensive.