Russia’s invasion of Ukraine by land, air and sea risks reverberating across the global chip industry and exacerbating current supply-chain constraints. Ukraine is a major producer of neon gas critical for lasers used in chipmaking and supplies more than 90% of U.S. semiconductor-grade neon.

Although the chipmaking industry was able to manage an increase in neon prices stemming from the 2014 Crimean crisis, the scale of today’s conflict looks much larger.