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Sky News host Chris Smith says looking at all the manufacturers of smartphones, there is destined to be a global “microchip shortage” given what is “going on in Ukraine”.

Ukraine is responsible for up to 70 per cent of the world’s neon output, an inert gas which plays a critical role in the production of semiconductor chips used in computers, smartphones and appliances.

Mr Smith discussed the issue with Tech Guide editor Stephen Fenech.

Mr Fenech said the conflict in Ukraine “certainly will affect some of the smaller companies, some of the companies producing devices in the entry or mid-tier level”.