TAIPEI (Taiwan News) — As Taiwan prepares to join other nations in imposing sanctions on Russia over the invasion of Ukraine, the semiconductor sector should see minimal effects, reports said Friday (Feb. 25).
In 2021, Taiwan exported NT$560 million (US$19.98 million) worth of semiconductors to Russia, according to the Taiwan Institute of Economic Research (TIER), CNA reported.
However, Russia accounted for between 30% and 70% of the global production of raw materials used for semiconductors, lasers, and other elements in electronic products, such as palladium, neon, nitrogen, and xenon. Observers said it remained to be seen how Russia would react to the sanctions, and what the impact would be if it retaliated by restricting its exports of the raw materials.
While the electronics sector in the United States was more reliant on imports from Russia and Ukraine, Taiwan had diversified its sources and would therefore suffer less. The country’s semiconductor sector has also built up reserves of strategic materials to last at least six months, TIER said.