Context: Moody’s Analytics has warned that the Russia-Ukraine war could hit global supply chains that are already constrained due to the pandemic.
Key takeaways
The worst impact would be on the ongoing chip shortage because the warring nations control significant supplies of key raw materials used in semiconductors.
Russia controls about 44% of global palladium supplies and Ukraine produces 70% of the neon supply — two key raw materials that go into making chips.
Semiconductors chips are necessary in the likes of automobiles, mobile phones and consumer electronics.
Do You Know?
It is estimated that the semiconductor industry is growing fast and can reach $1 trillion dollar in this decade.
India can grow fast and reach $64 billion by 2026 from $27 billion today.
Mobiles, wearables, IT and industrial components are the leading segments in the Indian semiconductor industry contributing around 80% of the revenues in 2021.
The mobile and wearables segment is valued at $13.8 billion and is expected to reach $31.5 billion in 2026
