Major global chipmakers stop exporting to Russia

The US President’s economic sanctions against Russia include cutting off more than half of Russia’s high-tech product imports. The purpose is to prevent the supply of high-tech products used in aerospace and navigation. However, the sanctions are not to prevent the consumption or supply of electronic products. Furthermore, there are reports that international semiconductor manufacturers including TSMC have stopped supplying to Russia.

Russia - Ukraine Crisis

The industry expects that the suspension of cooperation with Russia by major semiconductor manufacturers will have a greater impact on local ASIC chip design factories. The “Washington Post” mentioned that the chips that TSMC no longer manufactures are related products of the Russian ASIC chip manufacturer, Elbrus. While Elbrus-related products are used less locally in Russia, most of Russia’s main dual-use core CPUs still use Intel platforms.

The industry believes that according to the relevant chip design drawings previously released by Elbrus, the production, manufacturing, and procurement sources of Russian semiconductors are the United States, Taiwan, and China, and most of them are mature processes.

Gizchina News of the week

According to data from the World Semiconductor Trade Statistics (WSTS) organization, although the sanctions may have a great impact on Russia, Russia has never been an important direct consumer of semiconductors. The intercontinental country accounts for less than 0.1% of global chip purchases. Therefore, relatively speaking, the impact on the operation of semiconductor companies is relatively limited.

TSMC will cut off chip supply to Russia

Taiwanese chip maker, TSMC currently accounts for 55% of the global foundry market. Adding other Taiwanese foundries to TSMC, they collectively account for no less than 65% of the global foundry market. In addition, Samsung’s foundry market share is around 17%, second only to TSMC. UMC and GF (Global Foundries) each have about 7% market share. The combined market share of SMIC and Hua Hong is about 6%.

Most of these companies are now under obligation to obey the sanctions on Russia by their countries. China is yet to issue any sanctions but Taiwan and the U.S. have. Thus, the major part of the chip market will not do business with Russia for now.

Earlier, the US President announced a new round of sanctions against Russia today. In addition to imposing sanctions on Russia’s largest banks and state-owned enterprises, it will also limit Russia’s ability to trade with US dollars, euros, pounds, and yen. The likes of Google Pay and Apple Pay are no longer functional. Furthermore, it will freeze all Russian assets in the United States. The U.S. will also control and limit high-tech export.

Disclaimer: We may be compensated by some of the companies whose products we talk about, but our articles and reviews are always our honest opinions. For more details, you can check out our editorial guidelines and learn about how we use affiliate links.

Source/VIA :
Previous Russia - Ukraine war pushes up the prices of nickel and aluminum
Next Nokia unveils three smartphones: rugged and long-lasting, with removable batteries, and a new headset

1 Comment

  1. Medusa
    February 27, 2022

    You're busy giving sanctions which is not working or won't even work at the end of the day and people are loosing their lives and properties. It's obvious they're also enemy of the people. They call it "they're taking a diplomatic measures". Is that the only diplomatic measures option to be taken? Diplomatic measures my foot!

    Some brilliant questions to ask ourselves:

    1. How can or how does these measures quench this on going crisis?

    2. What is the future proof that these measures will quench future crisis breaking out between the two neighbouring countries and the whole world at large?

    Let our intelligence not be fooled by the constant hypnosis from the western govt through the most lethal weapon they managed to unleash against human intelligence (CNN, BBC and Al Jazeera etc). War against human psychology.

    What we really need now are the measures that are feasible enough to stop these on going crisis between the two countries not measures adding salt to the injury.