Semiconductor Supply Chain Under Threat
The conflict with Iran threatens semiconductor production by raising energy costs and tightening supplies of critical materials.
The price of neon, crucial for semiconductor lasers, is already spiking due to the conflict, as Iran controls access to key shipping lanes. Expect further price increases if tensions escalate. Sanctions on Iran could disrupt the flow of raw materials like aluminum and copper, essential for chip manufacturing. Alternative sourcing will take time and add costs. Memory chip production is particularly vulnerable, potentially impacting everything from smartphones to data centers. South Korean manufacturers, major players in the memory chip market, are closely monitoring the situation.
