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Semiconductor sanctions could affect Central Texas companies, limit Russian tech

Part of the sanctions announced Thursday include cutting off supplies of technology components, like semiconductors.

AUSTIN, Texas — Thursday, President Joe Biden announced sanctions against Russia after Russian military forces invaded Ukraine late Wednesday night.

Part of those sanctions included cutting off supplies of technology components such as semiconductors. Central Texas is one of the hubs of semiconductor manufacturing in the U.S.

According to industry experts, the chips made in the Austin area don't typically export to Russia. At least two experts told KVUE that Russia is not much of a market for U.S.-manufactured semiconductors. However, making the chips takes a lot of neon gas.

Neon is used in making the lasers that cut the semiconductor chips. Companies around the world source 90% of the neon to make the lasers from Russia and Ukraine. According to one local expert, Ukraine processes the neon gas then exports it.

While the sanctions may also limit the import of neon to companies around the world, neon sign makers in Austin say their supplies are stocked. Various small businesses locally said they have enough neon and other noble gasses in large tanks. Depending on the company, some have enough saved to last anywhere from a year to a decade or more.

Either way, many small businesses and their suppliers in Texas don't source their neon from Ukraine, but from Malaysia.

While these sanctions aim to cripple Russia's technology in the near and distant future, Russia may be able to source semiconductors from China and Taiwan. The two countries produce a majority of the world's chips already.

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