Huawei's ban on chip sales in Russia
The global computer chip industry, including the top company Taiwan Semiconductor Manufacturing Company (TSMC), has begun selling off its products to Russia.
The US daily Washington Post reports that the companies are implementing this decision as a result of US sanctions after Moscow's invasion of Ukraine.
The United States has said it will cut sales of high-tech products by more than half in a bid to curb Russia's economic diversification and its ability to support its military.
The Biden administration has said it will not cut off supplies of consumer electronics to the defense sector, which is designed to cut off supplies to space, marine technology and other top technology buyers.
TSMC has already blocked all sales to third parties in Russia and Russia. A source close to the organization confirmed that the company is examining the details of the ban in order to fully comply with the ban. However, he declined to be identified.
In an official statement, TSMC said, "The company is fully committed to abiding by the announced new export control rules."
Malta-based chip maker Global Foundries also said it would abide by the rules. Russia has a system to review and block any prohibited sales, said Carmi Lehmann, head of the company's public relations and commerce department, "although the size of the company's sales to Russian buyers is not large."
Lehmann said the internal review system is similar to the one implemented by the company for Huawei.
US chip giant Intel has also said it will comply with all export sanctions, including new export controls on Russia.
Russia relies on Taiwan, South Korea, the United States, Europe, and Japan for its supply of microchips, as it does not have its own chip production system. As a result, the embargo will push the country into a fragile state, the Post reported.
As TSMC is the world's largest and most advanced chip maker, its participation in the current sanctions would be particularly detrimental to Russia.
The chip, which was cut off from Russia, contained a Russian-designed Elbrus brand semiconductor, according to a person involved in TSMC's trade.
Russia's military and security forces have used the Elbrus chip in a number of computing applications, said Costas Tigkos, an electronics expert at the UK-based defense intelligence agency Jenssey. According to him, losing TSMC in chip production would be "devastating" for Russia.
Because of the design in Russia, the country's government has encouraged large domestic companies and banks to use the Elbrus chip in their computers.
The Semiconductor Industry Association, a leading organization of chip makers, said its members were "fully committed" to the new sanctions "in response to the events in Ukraine".
The United States and other Western nations have long controlled the sale of chips and other electrical components to Russia, especially those designed for military use. Under the new rules, imports of chips used in both the military and commercial spheres will also be stopped.
The United States has used such sanctions only once before - against China's Huawei. Under the agreement, companies worldwide using US parts, software or designs to make chips would have to stop selling them to Russia.
Analysts say most chip factories in the world use software, designs or equipment designed in the United States.
