Posted on 03/11/2022 2:37:17 PM PST by Oldeconomybuyer
WASHINGTON (Reuters) -Ukraine's two leading suppliers of neon, which produce about half the world's supply of the key ingredient for making chips, have halted their operations as Moscow has sharpened its attack on the country, threatening to raise prices and aggravate the semiconductor shortage.
Some 45% to 54% of the world's semiconductor-grade neon, critical for the lasers used to make chips, comes from two Ukrainian companies, Ingas and Cryoin, according to Reuters calculations based on figures from the companies and market research firm Techcet. Global neon consumption for chip production reached about 540 metric tons last year, Techcet estimates.
Both firms have shuttered their operations, according to company representatives contacted by Reuters, as Russian troops have escalated their attacks on cities throughout Ukraine, killing civilians and destroying key infrastructure.
The stoppage casts a cloud over the worldwide output of chips, already in short supply after the coronavirus pandemic drove up demand for cellphones, laptops and later cars, forcing some firms to scale back production.
While estimates vary widely about the amount of neon stocks chipmakers keep on hand, production could take a hit if the conflict drags on, according to Angelo Zino, an analyst at CFRA.
(Excerpt) Read more at msn.com ...
“Winner in our economy will be those that own the junkyard”.
That, and used economy cars.
I have four—three are awaiting restoration.
Seen the major leap in auctioned economy cars from the 60s and 70s? Bidding didn’t meet reserve at $10,000 on a Mercury Bobcat. (A Pinto, as produced by Mercury)
What happens to EVs given today’s chip supply chain?
We would just buy it from Russia (land formerly Ukraine), if we didn’t have idiotic leaders. They are upset in an abnormal way about Ukraine. It is not organic.
As Glen Beck has documented: after the coup Obama and co made themselves the guardians of billions of 'aid' money that US taxpayers sent to Ukraine - this money was then artfully lost through Privatbank and laundered.
I suspect that there is evidence in Ukraine that would sink them for ever.
But no doubt there's a whole other dimension to it that I'm not aware of.
Bidding didn’t meet reserve at $10,000 on a Mercury Bobcat. (A Pinto, as produced by Mercury)
Hey, I was close. Not exactly a shortage, but they’re shorting us our Doritos:
https://freebeacon.com/latest-news/doritos-cuts-number-of-chips-in-each-bag-blames-bidenflation/
Ted Kaczynski’s dreams are coming true...
Globalism bearing fruit all over.
My little '72 Pinto probably got 25-27, but had the excellent 2-liter engine, 4-speed, disks, Sears A/C, and carbureted.
I was so impressed with a quick run through the dealer's parking lot, I bought it within minutes. 'Cost $1 a pound, and weighed 2000 pounds.
Accustomed today with a 25-MPG small Nissan pickup, I'll be looking for a '72 Pinto/Bobcat wagon at the auctions. ;)
Yet another example of the idiocy of globalization. Shaved a few pennies off to boost the C-suite’s loot, but suddenly, oops!, we forgot that we’re depending upon an unstable part of the world and now we have nothing. Just look at all the problems Boeing has had with 787 components that were outsourced all around the world not fitting correctly when they tried to join them. But I’m sure the execs got a tidy sum for themselves for doing it.
We really need to find some way to redirect American companies back toward actually being American, and putting the nation’s strategic priorities before their own. Trump had it right: Tell companies that if they want to outsource, fine, but if they do they’ll pay steep tariffs for the privilege of selling those products back into the U.S. market.
That’s actually one of the less important parts - if all we do is slam tariffs on goods, the only thing that will happen in many cases is the prices will go up and nothing else will change. That’s what happened when Reagan imposed the Harley tariff - and the end result is that motorcycles got more expensive, plus Harley is bleeding out now.
We need to look at all the things that caused manufacturing to flee the US, many of which *aren’t* actually just “it’s cheaper there”
1. We need to remove much of the insane regulation and permitting requirements. Basic health and safety, environmental conservation, etc., is fine and needed, but having to consider ESG before being allowed to get funding or start building anything????
2. We need to restart a lot of support industries. For example, the US basically no longer produces rare earths due in part to regulations. China produces lots of rare earths, but will not let them be exported in many cases. If you want to do something with the Chinese rare earths, you must build the product or component that uses it there. If a product you want to make has this situation, throwing tariffs at it isn’t going to do anything but either stop production or just drive the price up.
3. We need to reform the legal system so that awards are reasonable and frivolous suits don’t go forward - such as lawsuits that allege building a factory or producing goods is racial discrimination. Anything reasonably successful that is made in the US has the maker’s legal team’s costs baked into it. Not so much if the product is made by a foreign contract manufacturer.
One these and other problems are solved and production doesn’t move back, then yes, impose tariffs. I’ve been involved in a number of projects to manufacture a good in the US, both personally and professionally, and the regulatory and supply chain barrier to entry for the US is quite high. Pretty much every venture was forced to go with the product being made in part or in full from foreign components because it wasn’t possible to source from the US.
Ping.
Got it. Thanks.
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