Chip shortage was already a big problem two years ago. When the Corona pandemic started, prices shot up. Especially for products that had any technology. Currently, prices are settling down, but this trend is being halted due to the conflict between Russia and Ukraine.
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According to the WAN show of Linus Tech Tips, Ukraine is supposed to supply 90% of neon, which is used in US semiconductors. When Russia annexed Crimea in 2014, the price of neon was said to have increased by 600%.
Russia also supplies 30% of the global market share of palladium. The raw material is also needed in semiconductors and medical equipment.
Russia and Ukraine also have a large market share of nickel, copper and iron.
The world is already seeing a dramatic increase in food prices. On the one hand, supply chains have been disrupted, Russia can no longer make payments abroad or receive money from abroad. This in turn leads to no more exports, which means that raw materials have to come from somewhere else. In order to find sources accordingly, companies have to invest diligently, which causes the prices of raw materials to rise. Thus, the end products, such as processors and graphics cards, also become more expensive.
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