Russia restricts exports of Helium & Neon sourced by Western & E Asian microchip firms

Russia has restricted the export of gases (Helium, Neon etc) necessary for the production of microchips and this could adversely impact firms in USA, Japan, South Korea and Netherlands among others.

The deliveries will now be carried out only by the decision of the Government of the Russian Federation, according to a resolution of the Cabinet of Ministers.

The restrictions were a response to the ban on supplying Russia with semiconductors necessary for the production of microchips.


However, without Russian neon, argon and helium, it will be more difficult for some countries to produce electronics, sources claimed.

The world markets are highly dependent on Russian supplies — they provide up to 30% of neon consumption.

Russia will be able to export these gases in exchange for importing semiconductors. The Ministry of Industry and Trade has confirmed that it will take into account the agreements reached when taking decisions on export supplies of these gases.

In April, the White House warned chipmakers to diversify their supply chains in case Russia reacts to tech export restrictions by blocking U.S. access to some key materials for making chips. These fears were reinforced by a Techcet report, which highlighted the dependence of semiconductor manufacturers on materials of Russian and Ukrainian origin, such as neon and palladium.