Russia-Ukraine war won' t impact semiconductor industry in short-term: Deloitte

The semiconductor industry may not see any major impact of the ongoing military actions between Russia and Ukraine, P.N. Sudarshan, Partner and TMT Industry Leader, Deloitte India, told Business Today. 

Russia and Ukraine are both suppliers of components used in semiconductor manufacturing. 

& ldquo The semiconductor supply chain (excluding certain specific categories like Opto) is largely in Asia and the US, so may not see a major impact in the short run except for the negative sentiment any war naturally fosters. But this strife could impact oil prices, which will potentially trigger a cascading effect and impact supply and demand. A long-duration conflict and a widening of the war could, of course, have far more serious consequences,& rdquo Sudarshan said. 

Russia is the leading producer of palladium. Palladium is essential for memory and sensor chips. It also produces several other key raw materials for computer chips, including the rare& ndash earth metal, scandium. On the other hand, Ukraine is a leading exporter of neon gas. It is a highly purified gas that is used for the most important process - etching circuit designs into silicon wafers to create chips. However, Sudarshan says the semiconductor supply is largely in Asia and the US.