After petrol and gas, Middle East conflict will now affect smartphones too, gadgets may become expensive

New Delhi. The impact of the ongoing conflict in the Middle East has now started reaching the technology and gadget markets across the world. Earlier, the rising prices of gas and petrol had increased the concern of the people, now there is a possibility of increase in the prices of smartphones, laptops and car gadgets too. Although there are no chip manufacturing factories in the Middle East, the raw material required for making chips comes from here.

Chips and Raw Materials

Helium: Used in cooling and laser technology, one-third of the world’s supply comes from Qatar.
Bromine: Essential in chip packaging, comes from the Dead Sea area (Israel and Jordan).
Sulfuric acid: 40% of the amount used in cleaning chips comes from this area.
Strategic supply disruptions could bring chip factories to a halt, putting pressure on gadget prices.

Will smartphones and gadgets become expensive?

A lot of electricity is used in making chips. Chip factories’ expenses have increased by 20–30% due to rising crude oil prices and increased transportation costs. Experts believe that if this conflict continues for more than 8 weeks, America’s leading chip company Nvidia’s AI chip supply and automobile sector will be affected. This may increase the prices of smartphones, laptops and other gadgets.

Impact and opportunities on India

India is currently developing its semiconductor industry. Rising prices of raw materials can put pressure on the budget of new projects. At the same time, experts say that this is also an opportunity for India. The country will now have to focus not only on chip making but also on domestic production of chemicals and gases used in chips. This may make it possible to avoid global supply crisis in future.