Monday, February 14, 2022

"Russia could hit U.S. chip industry, White House warns"

I sure hope the folks pushing for war understand how this all plays out.

I'd say "Just tell the dude Ukraine won't join NATO" but that is probably only half the issue.

Think of all the things Putin could have done after the Maidan coup in 2014 and he went for Crimea. The Russians are terrified that if Ukraine controls Crimea, whether they are in NATO or not, that they will allow Western navies to base, or at minimum refuel and revictual at Sevastopol. 

From Reuters, February 11:

The White House is warning the chip industry to diversify its supply chain in case Russia retaliates against threatened U.S. export curbs by blocking access to key materials, people familiar with the matter said.

The potential for retaliation has garnered more attention in recent days after Techcet, a market research group, published a report on Feb. 1 highlighting the reliance of many semiconductor manufacturers on Russian and Ukrainian-sourced materials like neon, palladium and others.

According to Techcet estimates, over 90% of U.S. semiconductor-grade neon supplies come from Ukraine, while 35% of U.S. palladium is sourced from Russia.

Peter Harrell, who sits of the White House's National Security Council, and his staff have been in touch with members of the chip industry in recent days, learning about their exposure to Russian and Ukrainian chipmaking materials and urging them to find alternative sources, the people said....

....MUCH MORE