Since February 24th, when the United States announced sanctions against Russia and banned technologies and products such as semiconductors, computers, telecommunications, information security equipment, lasers and sensors, manufacturers including TSMC, Intel and AMD have announced that they will stop supplying to Russia. In addition, SMIC, a Chinese technology company, was forced to cut off its supply. Other global enterprises outside the semiconductor industry have also made strategic adjustments due to sanctions. The social platform TikTo blocks most of the media that support Russia, such as RIA Novosti, RT, Sputnik, etc. Video streaming giant Netflix temporarily stopped all projects and acquisitions in Russia to assess the impact of Russian military action on Ukraine.
According to Bloomberg News, on March 1st, local time, an American official said that any enterprises that use American products and technologies are bound by the ban on Russia, including Chinese semiconductor and electronic enterprises. According to the report, Washington will rely on Chinese companies to join the US-led sanctions against Russia, aiming at weakening the latter’s ability to purchase key technologies and components.
The report quoted the Peterson Institute for International Economics as saying that in 2020, 70% of Russia’s chips, computers and smart phones will come from China. At the same time, according to the data of Russian customs in 2021, China is also Russia’s largest source of chip imports, accounting for 32.8% of its annual semiconductor imports.
The American official said that any use of American products, including software and design, is subject to the ban, even if they are manufactured overseas. Companies that try to circumvent these new control measures will face the prospect of isolation from American native technology. Corporate executives may go to jail for violating the rules.
The report explains the basis. After SMIC was blacklisted by the United States in 2020, it continued to use the chip manufacturing equipment of American suppliers including application materials. If the company fails to comply with U.S. sanctions, it may face stricter restrictions, which may make it more difficult or impossible for it to obtain licenses to repair parts and new equipment.
In addition, the terminal suppliers of electronic products use the chips of Intel, AMD, Qualcomm, Qorvo and other companies, which means that their products carry American technology and software. As a member of SIA (American Semiconductor Industry Association), these American enterprises all joined the sanctions against Russia without exception.
Thus, the routine is still the routine operation of “long arm jurisdiction”, but the threat and kidnapping are very obvious. What’s more, these Chinese companies are big customers of the US semiconductor industry. Meanwhile, Apple’s iPhone, PC and other consumer electronic products in Russia have not been affected at present.
