The Biden administration is warning the U.S. chip manufacturers of a retaliation should U.S. imposes economic sanctions on Russia. The White House wanted the semiconductor industry to diversify supplies in case Russia blocks access to key materials.

Many chip manufacturers rely on Russian and Ukrainian imports, including materials like palladium and neon. Over 90% of U.S. semiconductor grade neon is imported from Ukraine, while 35% of palladium is sourced from Russia.

White House officials and members of the semiconductor industry have been discussing the issue in recent days. The administration wants to know the companies’ level of exposure to Russian and Ukrainian materials and urges them to diversify supplies.

Neon is a critical material for lasers used to make chips. It is a byproduct of Russian steel manufacturing and is purified in Ukraine. Palladium is used in sensors and memory.