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Russia-Ukraine Impact on Chips Hinges on How Crisis ‘Unfolds’: Gartner

“Only time will tell” if Russia’s Ukraine invasion “worsens the existing strains on the semiconductor supply chain,” blogged Gartner analyst Gaurav Gupta Tuesday. Many chip manufacturers have claimed diversity in their raw materials and gas supply chains with sufficient inventory,…

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“and they actually don’t expect to see an immediate impact beyond already-present shortages, he said. But many are wary of “long-term ramifications if the situation persists or escalates,” he said. Semiconductor Industry Association CEO John Neuffer in a statement Feb. 24, the first day of the invasion, said chipmakers have "a diverse set of suppliers" of key materials and gases, "so we do not believe there are immediate supply disruption risks related to Russia and Ukraine” (see 2203070014). But Gartner’s Gupta said the impact on “raw material supply, market demand and supply behaviors depend[s] on how the situation unfolds, so the biggest risk is whether a new wave of panic buying sets in.” Panic buying was “one of the major reasons for the onset of the ongoing semiconductor shortage, as it overstretched and deteriorated the supply chain further, without bringing any advantages to buyers,” said Gupta.