Limited impact from Russia Ukraine war on chip supply chain

On Saturday, in a statement the government of Taiwan said, it expects little impact on the supply of raw materials for semiconductors from the war in Ukraine.

Following a meeting of the cabinet, Vice Premier Shen Jong-chin, said there would not be much impact on three key raw materials for making chips – neon gas, C4F6 gas and palladium. Russia produces both gases as well as the metal.

In a statement the Taiwanese cabinet said, Taiwanese chip makers use little palladium, and neither Ukraine nor Russia is a major source of the gasses and the metal.

Domestic companies also have the ability to refine and “remanufacture” palladium, so the impact from the Ukraine Russia war is limited, it said.

For both gases, neon and C4F6, Taiwan has sufficient stock, furthermore, supply chains for both are diversified, so “the near term impact is not big”, said the Cabinet.

Taiwan’s energy supplies are also secure, with 145 days of oil reserves and diversified supply sources, while for liquefied natural gas, or LNG, there are also diverse supply sources, said the cabinet.

On Friday, Taiwan’s government said it would sanction Russia for its invasion of Ukraine. However it has yet to provide any details. Taiwan’s exports to Russia are minimal.

On the financial markets, the cabinet said the Taiwan dollar’s exchange rate was relatively stable but that the central bank would keep a close watch and take “appropriate management measures” if needed.

Categories: Creativity, Economy & Finance, Entrepreneurship, Geopolitics, HR & Organization, Regulations & Legal, Strategy

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