Following Russia's invasion of Ukraine, chip-maker Advanced Micro Devices is now the latest global company to have severe ties with Russia. In a move that signals that companies around the world are starting to comply with the sanctions against Russia, the maker of Radeon and Ryzen announced that it is suspending sales of its products to Russia.
According to PC World, a representative from the company told the publication that they were suspending their sales and distribution of their products into Russia and Belarus due to sanctions placed on Russia by the United States and other nations.
The West sees Russia as an ally in the invasion of Ukraine. Russian President Putin has been allowed to use the country's land as a staging ground.
The U.S. Department of Commerce issued a requirement that limits the export of microelectronics and other components. The White House has imposed sanctions on Russia in order to punish it for its invasion of Ukraine.
According to a report from the Washington Post published on February 25, TSMC suspended all sales of chips to Russia in order to comply with the new export requirements of the Biden administration. TSMC is the world's largest chipmaker. TSMC stated that it is suspending sales to third-parties that would supply Russia with chips.
GlobalFoundries stated that it was complying with U.S. rules. The Semiconductor Industry Association, or SIA, said that it is committed to complying with all sanctions and rules, in response to the deeply disturbing events unfolding in Ukraine.
According to a report from Fortune, Russia secures 70% of its chips from China and only 30% of them are imported from other sources. Despite the small percentage of chips purchased from U.S., European, and other Asian firms, the chip blockade is expected to have a significant impact on the Russian economy. According to Fortune, some experts believe that Chinese chips won't be good enough to drive Russian missiles because they use U.S.-developed technology.
In consumer applications, the chips that are used in computers and gaming consoles are made by the same company, meaning that Russians will not be able to buy the latest chips from Microsoft or Sony. Ahead of the confirmation that it will stop chip sales to Russia, the Vice Prime Minister of Ukraine asked gaming companies to temporarily ban accounts from there.
President Joe Biden said last month that the sanctions would affect their ability to compete in the 21st century economy. The United States had previously used an embargo to stop the sale of chips to Russia that were designed with American technology.
The real-life Russia-Ukraine conflict will likely have a long-term impact on both sides. Russia could retaliate against U.S. exports restrictions by limiting its exports of neon and palladium, according to experts. Neon prices went up by 600% after the conflict in Ukraine. The world is experiencing a shortage of electronics.
Other businesses have left Russia in addition to the Semiconductor industry severing ties with Russia. Visa, Mastercard, and American Express have all stated that they are cutting off ties with Russian banks, after Apple said it would stop hardware sales in the country. As a result of the sanctions, Apple Pay and Google Pay no longer work in Russia.
All Rights Reserved © 2024
