Taiwan is a major chip producer. It is home to the largest contract chip maker in the world, TSMC, Asia's most valued listed company. This company has been key to reducing the global shortage of semiconductors, which has sometimes forced some auto production lines to close.

Following a meeting presided over by Vice Premier Shen Jongchin, the cabinet stated that three of the key raw materials needed to make chips - C4F6 and neon - would have little impact. Russia produces palladium, C4F6 et neon.

The cabinet stated that Taiwanese chipmakers use very little palladium and that neither Russia nor Ukraine are major sources of the metal. It said that domestic companies can refine and "remanufacture", palladium. This should have no impact on the situation.

The Cabinet stated that there are stocks of neon and C4F6 on the island, and that supply chains are diversified so "the near-term impact is not large".

It said that Taiwan has 145 days worth of oil reserves and diverse supply sources. However, Taiwan's energy supply is also secure. For liquefied natural gases, such as LNG, there are many sources.

The government of Taiwan announced Friday that it would impose sanctions on Russia in response to its invasion of Ukraine. However, it did not give any details and Taiwan's exports are very low.

The cabinet stated that although the Taiwan dollar exchange rate is relatively stable, it was still a volatile market. However, they said that the central bank would monitor the situation and take appropriate management steps if necessary.

Cabinet said that the finance ministry would also help stabilize the stock market, if necessary.