Chip exports to Russia dropped 90% after restrictions

Deepak Gupta June 30, 2022
Updated 2022/06/30 at 9:27 AM

Russia’s war against Ukraine has had many consequences that have never been seen before. Vladimir Putin’s country has suffered heavy penalties and blockades, which have significantly conditioned its economic and technological evolution.

One of the sectors most affected by the blockades applied by other nations is that of components. And according to the latest information, chip exports to Russia dropped by 90% after these same restrictions.




Since the beginning of the war, we have witnessed several consequences, and as far as the technological segment is concerned, these have been more than many. Soon after the conflict started, it was felt that this was already having an impact on the chip industry. Several powerful brands such as Intel and AMD have barred the Eurasian country from accessing these components, the United Kingdom has banned access to chips with ARM architecture, and Taiwan will only be able to sell chips to Russia that are slower than those of the PlayStation 2. Ukraine no longer supplies essential neon gas for chip manufacture.

To try to get around this situation, Russia itself has shown its willingness to produce 28nm chips by the year 2030. In addition, it was known that Russian tanks would be using home appliance components.

Sanctions: 90% less chips exported to Russia

As a result, according to Reuters, global semiconductor exports to Russia have dropped 90% since the United States and allies imposed export controls and blockades on Moscow. This information was advanced by the Secretary of Commerce of the United States, Gina Raimondo, this Wednesday (29).

Raimondo also said, during an annual conference of the Department of Commerce, that the blockades implemented in the Russian aerospace sector are hampering its ability to generate revenue and to support military aviation. The secretary adds that "Russia could be forced to stop between half and two-thirds of its commercial planes over the next four years to funnel them into spare parts".

The executive also threatened the closure of SMIC, China's largest chip maker, if it is proven that the company is supplying chips to Russia. Raimondo even said that if this or other companies are sending chips to Putin's country "we will close them and we can, because almost all the chips in the world and in China are made with US equipment and software and I intend to fulfill that commitment if necessary”.

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