Packaging Solder Paste：Is Russian Afraid of Western Chip Sanctions?

2022-03-12

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Since the outbreak of the Russian-Ukrainian war, the West has continuously imposed sanctions on Russia. Consequently, Oil and nickel prices soared, and the market was in chaos. What will happen to Russia's chip imports?

Military and consumer chips are not reliant on chip sanctions. However, Russia strongly relies on chip imports in the industrial aspect. It is estimated that the vast majority of imported chips are used in the industrial sector.

Russia has been importing chips from the United States for many years. American chips make up the largest proportion of imported chips. We all know the love and hate between the United States and Russia. Russia relies on imports. Is Russia afraid that the United States will cut the supply chain of chips someday?

The United States has a monopoly on high-tech markets such as chips and greedily controls the economies of other countries. Huawei has also encountered resistance as it competes in the international market. Because of lacking lithography machines, Russia has to import chips from other countries. Why does Russia not afraid of America’s sanctions?

The extreme chip restrictions on Russian must be aimed at containing Russian military or economic development. 90% of Russian chips are imported from Europe and the United States. Will the Russian economy be affected?

As we said before, Russia has a strong military. Although most of Russia's chips rely on imports, Russia has independent manufacturing capabilities. Because the size of military chips is large, Russia is not afraid of US export restrictions.

Packaging Solder Paste：Are Russian Afraid of Western Chip Sanctions?

The U.S. chip restrictions on Russia are almost comprehensive. Russia's chip imports may face great difficulties.

Most of the chips Russia purchased from abroad are used in cars, industrial equipment, and some motor control chips. Aside from the military, the Russian economy is largely dependent on heavy industry.

Most of the original chips imported from Russia are not as well known as the microprocessors and graphics chips made by Intel and Nvidia. However, they are equally important to the production of automobiles and hundreds of other consumer goods. Most imported chips are analog semiconductors for industrial equipment, switches, and motor control.

A Chinese chip industry consultant said China would analyze and learn the impacts of U.S. sanctions on Russia. Russia failed to develop the chip industry and now relies on importing foreign semiconductors.

It can be said that SMIC is correct. When the import of integrated circuits exceeds one trillion yuan, it lays the foundation for producing domestic chips in the future. After factories were built in Shanghai and Beijing, SMIC can manufacture hundreds of millions of wafers per year.

China put great efforts into chip and lithography machine research and development. However, Russia does not seem to be keen on its own research and development and prefers to import chips. Russia does not want to participate in independent research and development because the progress is slow, and the effect is not ideal. Hence, it is very convenient for Russia to import chips from the United States.