Clearly the mechanism of the global supply chain why chips and parts such as Intel and AMD are being exported in large quantities to Russia but are being imported in large quantities
As part of the sanctions against Russia's military invasion of Ukraine, from around the end of February 2022, US semiconductor giants
The supply chain that keeps tech flowing to Russia
https://www.reuters.com/investigates/special-report/ukraine-crisis-russia-tech-middlemen/
China bans export of its Loongson CPUs to Russia | TechSpot
https://www.techspot.com/news/96966-china-bans-export-loongson-cpus-russia.html
On February 24, 2022, the US government announced export restrictions on high-tech products related to semiconductors and aviation parts following Russia's military invasion of Ukraine. This export control is limited to 'military chips and chips that can be used for both civilian and military purposes' and does not cover products for humanitarian purposes or consumer products such as PCs and smartphones. However, Intel and AMD have suspended all product exports because they require strict checks on regulated items.
Intel and AMD stop selling semiconductors to Russia, TSMC may also participate in sanctions and affect Russian domestic chips - GIGAZINE
In March 2022, the month after the export restrictions were announced, a Turkish businessman launched an IT product wholesale company called Azu International, and immediately began exporting PC products from the United States to Russia. According to an interview with Reuters, Azu International co-founder Goktek Agbaz runs an IT product wholesaler in Germany called Smart Impex, and with that partnership, Azu International grew rapidly and has been in business for seven months. He said that he exported parts worth 20 million dollars (about 2.6 billion yen) to Russia. Regarding the mechanism, Mr. Agbaz said, ``Smart Impex cannot be exported to Russia nor sold in Russia, but it can be sold to Turkey.And exports from Turkey, which is a non-member of the EU, to Russia It is not regulated,' he said.
A joint study by the UK's Royal Institute for Defense and Security Studies (RUSI) and Reuters found that there were several examples, such as Azu International, where supply routes to Russia remained open despite Western restrictions on exports. It has been confirmed that at least $ 2.6 billion (about 345 billion yen) of electronic components have been shipped to Russia in the seven months since the regulation was implemented until the end of October 2022. And it seems that $ 777 million (about 103 billion yen) of that was manufactured as a chip for Russian weapons systems.
A spokesperson for the U.S. Department of Commerce said, ``Since the implementation of export controls, the actions of 38 countries in response to economic sanctions have reduced semiconductor exports to Russia by nearly 70%,'' Reuters said in response. 'A review of Russian customs data reveals that since the invasion, declared values for Russian semiconductor imports have actually increased sharply,' he said. A spokesperson said, ``We cannot comment on Reuters' findings because the Department of Commerce has analyzed separate data.'' The image below is a graph of ``export value of Intel products to Russia'' created from Russian customs records, and you can see that the export value continued to rise sharply from April 2022.
Reuters has provided Russian customs data to semiconductor makers Intel, AMD, Texas Instruments and Infineon for product shipments arriving in Russia from spring to fall 2022. In response, an Intel spokesperson said, ``We take the findings very seriously and are investigating this issue,'' and an AMD spokesperson said, ``AMD strictly adheres to all export controls. We have stopped selling and supporting our products in Russia.' Texas Instruments also said, 'We have not shipped to Russia since the end of February,' while Infineon also said, 'After Russia's invasion of Ukraine, we have instructed all our distribution partners worldwide to prevent deliveries, and we have been subject to sanctions. We are implementing strong measures to prevent the diversion of contrary products and services,' he said, showing a strict attitude to comply with regulations.
In addition to foreign companies that avoid export restrictions and ship products, there are also examples of companies in Russia moving to ``respond to export restrictions''. Moscow-based OOO Novelco will advise Russian companies on how to continue importing foreign products at seminars and other events, using Chinese Macau as a shipping point to Russia and Istanbul to ship semiconductors. We are implementing strategies that make use of the lessons learned from export restrictions due to the spread of the new coronavirus, such as establishing a company with
As a further case, Reuters cited AO GK Radiant, a Moscow electronics distributor. AO GK Radiant, a company celebrating its 30th anniversary in 2022, was importing Western chips for Russian customers. In July 2021, the U.S. Department of Commerce added the AO GK Radiant to its list of restricted trade, citing 'likely to source American-origin electronic components to further Russia's military programmes,' according to Russian customs records. , AO GK Radiant imports plummeted thereafter. However, as a result of a joint investigation by Reuters and RUSI, the company said, 'A less than a year old company called Titan-Micro, headquartered on the same floor of the building, is importing chips from Western countries, where AO GK Radiant We are operating,” it turned out. According to Reuters, Titan-Micro's address is a wooden house deep in the forests of northern Moscow, but when I actually contacted them, the employee worked on the 11th floor of the same building as AO GK Radiant. It seems that he said.
Russia, which is subject to severe economic sanctions from Western countries, is importing more from China, with which it maintains friendly relations. However, on the other hand, the Russian daily newspaper Kommersant reported that the Chinese government banned the export of the Chinese IT company Loongson CPU. According to Kommersant, China's export restrictions are different from Western countries' restrictions aimed at economic sanctions, and Loongson's chips are used in China's military industry, and China is subject to export restrictions as well as Russia. Therefore, it is intended to be retained for domestic use. Although the direct impact of Loongson's export restrictions being officially implemented is not expected to be high, there was also a report that ``Russia imported semiconductors from China have a fairly high defective product rate.'' ``If supplies from Western countries through other countries are blocked, Russia may be hit hard if supplies from China are also interrupted,'' technology media TECHSPOT points out.
``The defective rate of semiconductors imported by Russia from China has reached 40%,'' Russian media reports-GIGAZINE
Related Posts:
