Taiwan sees limited Ukraine war impact on chip supply chain, Auto News, ET Auto
Taiwan expects little impact from the war in Ukraine on the supply of key raw materials for semiconductors, the government said on Saturday.
Taiwan is a major chipmaker, home to the world’s largest contract chipmaker and Asia’s most valuable publicly traded company, TSMC, and key to alleviating a global semiconductor shortage that has in some cases forced car production lines to shut down.
The cabinet, following a meeting chaired by Deputy Prime Minister Shen Jong-chin, said three key raw materials for chipmaking – neon and C4F6 gases as well as palladium metal – would not have a lot of impact.
Taiwanese chipmakers use little palladium, and neither Ukraine nor Russia is a major source for what the island uses, the firm said in a statement. Domestic companies also have the ability to refine and “remanufacture” palladium, so there should be no impact, he said.
For Neon and C4F6, there are already stocks on the island and the supply chains are diverse, so “the short-term impact is not significant”, the Cabinet said.
Taiwan’s energy supplies are also secure, with 145 days of oil reserves and diverse sources of supply, while for liquefied natural gas, or LNG, there are also diverse sources of supply, he added. .
On financial markets, the cabinet said the Taiwan dollar exchange rate was relatively stable but the central bank would closely monitor and take “appropriate management measures” if necessary.
The finance ministry will also act to stabilize the stock market if necessary, the cabinet said.
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