Russia-Ukraine war: Impact on the semiconductor industry

While the short-term situation is manageable, the long-term impact can be more serious.

Lincoln Clark

Lincoln Clark

Partner, Audit, KPMG US

+1 408-367-4914

Scott Jones

Scott Jones

Principal, Advisory, Strategy, KPMG US

+1 408-367-7002

The Russia-Ukraine war has the potential to exacerbate semiconductor supply chain issues and the chip shortage that has impacted the industry for the past two years. The most immediate risk is to the supply of specific raw materials used in semiconductor manufacturing such as neon and palladium.

While the impacts of inflation and indirect supply-chain effects appears to be manageable in the near term, the potential for longer term impacts is yet to be determined and will be predicated on how events continue to unfold.

Read the brief for additional insights and contingency plan considerations for semiconductor company leaders.