Where “Half the World’s Chip-Grade Neon” Came From: Two Companies in Odesa and Mariupol

On March 11, 2022, Reuters reported that two Ukrainian companies had stopped producing neon for semiconductors: Cryoin in Odesa and Ingas in Mariupol. The article stated that 45–54% of the world’s semiconductor-grade neon came from these two companies, and this figure was widely cited as “about half.”

What exactly does this “about half” count? Where does neon come from, and what has become of the two companies as of September 2026? This article looks separately at the figures from the companies, an industry research firm, and the news report.

Where Is Neon Used in Semiconductors?

The Reuters article describes neon as a gas “essential for the lasers used to make chips.” The US industry research firm Techcet, in its report on neon for semiconductors, cites the 248-nanometer and 193-nanometer deep ultraviolet (DUV) lasers used in the lithography equipment that etches circuits as a driver of demand. Cryoin’s own website in 2024 listed “production of gas mixtures for excimer lasers” as the first use of neon.

Neon is one of the noble gases, which barely react with other gases. Ingas explains on its own website that it refines neon by cryogenic distillation (a method of cooling and separating gases by component) to a purity of 99.999% (5.0) and 99.9999% (6.0).

Originally a Byproduct of Steelmaking

In a 2016 article, Techcet described neon as “a byproduct of the air separation units that supply oxygen to steel mills.” Because steelmaking uses large amounts of oxygen, steel mills have large equipment that cools air to separate it into oxygen and nitrogen, and a mixed gas of neon and helium is captured in the process. Cryoin explained that it obtained helium “in the process of separating and refining the mixed neon-helium gas.”

Reuters’ 2022 article states that Ukraine’s neon is “a byproduct of Russian steelmaking.” Under this account, the two Ukrainian companies were refining raw gas from steel mills to a purity usable for semiconductors, and that raw material originated from steelmaking in Russia. The article does not state how much of the raw material came from Russia.

“About Half” of What?

The Figure Comes from a Reuters Calculation

For the 45–54% figure, Reuters wrote that it was “a Reuters calculation based on figures from the companies and the market research firm Techcet.” It is not a statistic from a state or international body. The figures behind the calculation appear in the article as follows.

In other words, “about half” is Reuters’s estimate of the two companies’ share of the pre-invasion global supply of neon refined to semiconductor-grade purity. It is not a figure that includes the raw gas, nor is it Ukraine’s official national production figure.

The Price Figures Also Come from Different Sources

The same article gives two figures for neon prices. A Cryoin representative stated that prices had risen by as much as 500% since December 2021. According to the US International Trade Commission (USITC), neon prices also rose 600% around the time of Russia’s 2014 “annexation” of Crimea. Both are figures for a specific period and a specific source.

February 24, 2022: Two Plants Stopped

According to Reuters, Cryoin in Odesa halted operations on February 24, 2022 — the day Russia’s full-scale invasion began — for the safety of its employees. A company representative said it could not fulfill a March order for 13,000 cubic meters, that restarting would be difficult if equipment were damaged, and that it was unclear whether refining feedstock could be obtained.

The Mariupol Plant

Ingas was located in Mariupol. In March 2022, when the Reuters article appeared, Mariupol was under siege by Russian forces. By the company’s own account, it made a “forced relocation from Mariupol to Odesa oblast” in the spring of 2022 and has continued production there. Mariupol’s steel plants and the occupation are covered in the article on steel.

What Can Be Confirmed as of September 2026

Ingas was founded in 1994, and as of September 2026 its website gives its location as the city of Pivdenne, Odesa oblast. The site lists, besides neon, noble gases such as xenon, krypton, and helium, and gas mixtures for uses including lasers, among its products. In November 2024, the company announced that it had obtained Authorized Economic Operator (AEO) status, which simplifies customs procedures.

Cryoin is a company founded by Dr. Vitalii Bondarenko, and the company had stated that it received ISO 9001 certification for noble-gas production in 2016. No announcement by the company or by a public authority indicating its status as of September 2026, including whether it has resumed operations, could be confirmed.

No figures have been found showing whether the two companies are producing at pre-invasion volumes, or what share of the world’s semiconductor-grade neon they now hold. “About half” needs to be read as an estimate from early 2022. Odesa’s port and the founding of the city are covered in the article on Odesa, and figures on Ukraine’s technology exports are in the article on computer services exports.