Ukraine War Won’t Affect Global Semiconductor Supply, But Will Hit Russia Hard

With the world still reeling from a global chip shortage, the recent crisis in Ukraine sends a bleak message to the already floundering industry. The semiconductor chip supply is yet to recover from the shock dealt by the COVID-19 pandemic. This, coupled with an impending war between two states that are contributors to the global supply chain, is detrimental to the industry’s recovery. The consumer electronics and automotive markets have been massively hit by this chip shortage. Apple, a major manufacturer of mobile phones and laptops, has pushed the release of their new line of MacBook and announced that the number of iPhone models being manufactured would be reduced due to the chip shortage. The automotive sector is still underperforming and major players have yet to resume operations at pre-pandemic levels. The invasion of Ukraine by Russia might have some implications on the global chip supply along with consequences for the Russian semiconductor industry itself.