Intel and AMD have reportedly halted supplies of industrial chips to Russia in response to recent trade restrictions that prevent the delivery of high-tech processors to Ukraine. These restrictions are part of the US government’s ongoing trade sanctions in response to Russia’s invasion of Ukraine.
According to RBC, Intel and AMD, two of the leading US semiconductor makers, have told their Russian partners that industrial chip exports to the country will be halted. On the other hand, these limits will have no impact on the supply chain for consumer-oriented items like laptop and desktop processors.
“The company is closely monitoring the situation and enforcing applicable sanctions and export control laws, including new OFAC restrictions and BIS guidelines,” an Intel representative in Russia stated.
The export prohibition on semiconductors and halted supplies of industrial chips does not begin until March 3rd. According to RBC’s sources, Intel and AMD have already orally told Russian buyers that all CPU shipments have been canceled. The sanctions might result in an acute shortage of servers and high-tech equipment needed in various businesses, including aviation, banking, and space exploration.
This halted supplies of industrial chips could result in losses for Russian businesses and government organizations, as many critical systems rely on foreign semiconductor designs. While Russia has stated that it intends to replace its hardware with foreign-made equipment, these plans have not come to fruition. The Russian-designed Elbrus-8C CPU failed recent industrial stress tests.
These halted supplies of industrial chips may also degrade Russia’s cyberwarfare capabilities, in addition to the economic consequences. Russian hackers have been linked to cyberattacks on the US, France, Poland, Germany, and South Korea, including a significant attack on the 2018 Winter Olympics.
Companies in the United States are under increasing pressure to limit their products and services in Russia. Russian state media have recently been under limitations by Meta, Google, and Twitter, which ban them from creating adverts or monetizing material.
On Friday, Ukraine’s Vice Prime Minister sent a tweet to Apple CEO Tim Cook, pleading to prohibit Russian Federation nationals from using the Apple App Store. The request has elicited no public response from Apple.
Even Taiwan-based TSMC, one of the world’s major semiconductor manufacturers, declared that it would follow Russia’s export control restrictions. Once the prohibition is fully implemented, Russia will have to hunt for alternative sources of semiconductors, such as China.
