When global semiconductor manufacturers need ultra-pure neon, argon, or krypton, they inevitably look to Ukraine. Sounds surprising? This relatively small country on the Black Sea coast controlled up to 70% of the global neon market – a critical gas for microchip production. The geography of this phenomenon has a specific address: Odesa and several industrial centers in the country's east.
Today, many talk about semiconductor shortages, supply chain crises, and geopolitical risks. Few understand how vulnerable the global tech industry became through dependence on one region for rare gas supplies. This article explains how the Ukrainian rare gas industry before war became a global leader, which technologies enabled this achievement, and why Odesa-based Cryoin Engineering holds a special place in this story, developing gas purification equipment operating from Taiwan to Germany.
The Technological Advantage of Ukrainian Producers
Ukraine global neon market leader status wasn't accidental or simple geographic luck. Companies such as Cryoin Engineering played a key role by advancing the engineering of high-purity neon production systems. Ukrainian producers invested in complex multi-stage purification technologies combining cryogenic rectification, adsorption methods, and catalytic purification.
A typical ultra-pure neon production facility includes:
● Primary extraction from air separation units (ASU) at metallurgical plants
● Multi-stage rectification at temperatures around -196°C to remove nitrogen, oxygen, and other components
● Catalytic purification to remove hydrogen and hydrocarbons
● Adsorption systems with zeolites and activated carbon for final purification
● Analytical control at each stage using gas chromatography and mass spectrometry
Odesa engineers went further. They created compact modular systems installable directly at metallurgical facilities. This radically reduced gas losses during transportation and storage. Some solutions achieved 99.9995% purity – a benchmark making Ukrainian neon the standard for semiconductor industry.
Cryoin Patents and Innovations: The Odesa School of Cryogenic Technologies
When discussing technological development in Ukrainian gas industry, you can't ignore domestic engineering bureaus. The Odesa school of cryogenic technologies formed over decades.
Here, in this port city, unique solutions for air separation units were developed. Cryoin patents and innovations span a wide spectrum: from rare gas purification systems to comprehensive ASUs with oxygen production from 50 to 10,000 m³/h. The patent portfolio includes developments in:
● Energy Recovery and Efficiency Systems: Cryogenic air separation is energy-intensive. Modern Ukrainian units use multi-flow heat exchangers with over 98% efficiency, turbo-expander systems for cold recovery, and integrated compressor stations with variable capacity. Some solutions reduce electricity consumption by 15-20% compared to standard units.
● Intelligent Control Systems: Modern ASUs aren't just mechanical devices but complex cyber-physical systems. Ukrainian developers implemented SCADA systems with predictive analytics, enabling maintenance forecasting, real-time operation optimization, and remote monitoring. Automatic optimization algorithms can increase target product yield by 3-7%.
From Theory to Practice: Real Projects Ukrainian air separation units operate in over 30 countries worldwide. Clients include European metallurgical giants, Middle Eastern chemical plants, and Asian glass manufacturers. One of the largest units designed by Ukrainian engineers produces 5,000 m³/h of oxygen for a steelmaking complex in Turkey.
Projects for rare gas producers became a particular source of pride. A facility in Poland produces high-purity krypton for filling energy-efficient windows. A complex in Spain supplies ultra-pure argon for welding titanium alloys in aerospace manufacturing. A system in Germany produces neon for medical lasers.
Global Role and Vulnerability
Until 2021, the global semiconductor industry comfortably relied on stable supplies from Ukraine. Intel, Samsung, TSMC – all depended to some degree on Ukrainian neon. American company Linde, one of the world's largest industrial gas producers, had rare gas purification facilities in Ukraine.
Production geography was quite compact: Odesa as the leading center for equipment manufacturing and neon purification, Mariupol as a metallurgical hub with powerful ASUs and rare gas production, Dnipro as another industrial air processing hub, and Lviv housing research centers and small production facilities.
When full-scale war began in February 2022, global supply chains took a serious hit. Neon prices skyrocketed 10-15 times. Semiconductor manufacturers frantically searched for alternative sources. They discovered quick switching was impossible – China could increase production but couldn't match the same purity. European producers faced raw material shortages.
Adaptation Under War Conditions
Ukrainian industry proved remarkably resilient. Odesa enterprises, though working under threat of missile strikes and electricity disruptions, continued manufacturing equipment and purifying gases. Some production evacuated to western regions. Several companies opened offices in Poland and Romania to service European clients.
Engineers worked on adapting equipment for generator operation and unstable power grids. They developed systems for rapid cold start after emergency shutdowns. Logistics routes redirected through western borders instead of traditional Black Sea ports.
The war also stimulated technological cooperation with the West. European and American companies, which previously viewed Ukraine only as a raw material supplier, now saw Ukrainian engineers as partners with unique expertise. Joint projects began for modernizing European ASUs, transferring rare gas purification technologies, and building new capacities in EU countries.
Economics and Scale: Why Ukraine Dominated
Economic factors played no less role than technological ones. Ukraine had a unique combination of advantages: metallurgical industry consuming over 3 million tons of oxygen annually meant dozens of large air separation units generating rare gases as by-products. Production costs were minimal since oxygen and nitrogen sales covered main capital and operating expenses.
Decades of experience created a deep specialist pool. Odesa National Polytechnic University and National Technical University "Kharkiv Polytechnic Institute" trained personnel for cryogenic industry. Design bureaus held rich archives of projects and solutions. Black Sea ports enabled quick, cheap maritime exports to Asia, Middle East, and Mediterranean. Rail connections with Europe ensured ground deliveries.
Concrete Numbers and Facts
In 2021, Ukraine produced about 15,000-20,000 m³ of high-purity neon – 60-70% of global production. For comparison: the entire semiconductor industry consumed approximately 25,000 m³ annually. China produced around 5,000 m³, but mostly lower purity.
Pre-war prices stood at approximately $400-600 per m³ for 99.999% purity neon. After war began, prices reached $4,000-6,000 per m³, though later stabilized around $1,500-2,000. Ukrainian krypton and xenon also held substantial world market shares – roughly 30-40%.
Industry Future: Challenges and Opportunities
War forced the world to rethink critical material supply strategies. Semiconductor industry invests in source diversification. China expands capacity, though quality still trails Ukrainian standards. Europe and the US consider building their own production but face high costs – without cheap by-product generation from metallurgy, the economics don't work.
Ukrainian engineers actively collaborate with European and American companies on technology transfer. Joint venture projects in Poland, Romania, and Germany create production facilities close to end consumers while preserving Ukrainian know-how. Many European ASUs built 30-40 years ago are inefficient by modern standards. Ukrainian companies offer modernization packages increasing energy efficiency by 15-25% and enabling rare gas extraction from units that previously didn't.
Demand for rare gases grows not only from semiconductor industry. Medical lasers, space industry (xenon for ion engines), energy-efficient window production (krypton and argon), and lighting industry – all these segments expand. Ukrainian expertise in ultra-pure gas production opens new possibilities.
Lessons for Global Economy
The Ukrainian rare gas industry story is a case study on global supply chain vulnerability and technological sovereignty importance. The world grew accustomed to just-in-time logistics and cost optimization through production concentration in cheapest locations. COVID-19 pandemic exposed problems with this approach. Ukraine's war underlined them in red.
Semiconductor industry realized: saving $200 per cubic meter of neon isn't worth risking shutdown of a $10 billion fab. Strategy now shifts toward supplier backup, strategic reserve creation, and investment in own or regionally close production.
The Ukrainian story also shows that even small countries can achieve technological leadership in niche but critical industries. Combining scientific schools, industrial base, entrepreneurial spirit, and quality focus creates competitive advantages difficult to replicate.
Despite all wartime challenges, Ukrainian rare gas industry retains potential. Many enterprises continue operating, adapting to new realities. Engineering teams not only preserve but develop technologies. International recognition of Ukrainian expertise opens doors for post-war recovery.
Odesa, which for centuries served as gateway between Ukraine and the world, has every chance of maintaining its status as a global cryogenic technology center. The story from air to ultra-pure gas, from Soviet factories to world-class high-tech production – this tells not just an industry story but one of resilience, innovation, and the ability to find your place in the global economy even under the most difficult circumstances.
Next time you hold a smartphone or laptop, remember: inside those microchips might be a piece of Ukrainian neon, purified in Odesa and delivered to a fab in Taiwan or Germany. Invisible but absolutely critical – like many other things that make our modern technological world possible.