Russia-Ukraine War: Taiwan Anticipates Limited Impact on Chip Supply Chain

Taiwan expects little impression from the battle in Ukraine on the provision of key uncooked supplies for semiconductors, the federal government stated on Saturday.

Taiwan is a significant chip producer, dwelling to the world’s largest contract chip producer and Asia’s most respected listed firm, Taiwan Semiconductor Manufacturing Firm Restricted (TSMC), and key to assuaging a world scarcity of semiconductors which have in some circumstances compelled auto manufacturing traces to shutter.

The cupboard, following a gathering chaired by Vice Premier Shen Jong-chin, stated three key uncooked supplies for making chips —the gases neon and C4F6 in addition to the steel palladium — wouldn’t see a lot impression.

Taiwanese chip makers use little palladium, and neither Ukraine nor Russia is a significant supply for that which the island does use, the cupboard stated in a press release. Home firms even have the flexibility to refine and “remanufacture” palladium, so there must be no impression, it stated.

For neon and C4F6, there are already shares on the island and provide chains are diversified, so “the close to time period impression will not be large”, the Cupboard stated.

Taiwan’s vitality provides are additionally safe, with 145 days of oil reserves and diversified provide sources, whereas for liquefied pure gasoline, or LNG, there are additionally numerous provide sources, it stated.

On the monetary markets, the cupboard stated the Taiwan greenback’s alternate price was comparatively steady however that the central financial institution would hold an in depth watch and take “acceptable administration measures” if wanted.

The finance ministry may also act to stabilise the inventory market if vital, the cupboard stated.

© Thomson Reuters 2022