Analog Devices, Texas Instruments Inc, and Microchip are on the spot amid claims that Russia got access to their chips and technology even with sanctions in place. While the companies maintain innocence, it is becoming increasingly clear that third parties from other parts of the world have been buying from the companies only to deliver the same to Russia.
US Chips and Technology in Russia
The revelations came to light following the arrest of Artem Uss, who has reportedly been running a secret supply chain network that acquires US technology only to deliver to Russia. The Son of a Siberian governor is currently under house arrest in Milan, facing potential extradition to the US.
Uss and his associates are accused of defrauding top chip companies in the US to sell them crucial chips and technology used in Russian weapons systems. While the US had imposed a total ban on the sale of, it appears that Russia, with the help of Uss, had been building a crafty network in anticipation of such sanctions.
The secret channel has been a great success as Russia has been able to secure crucial chips and US technologies that it has used to rebuild dismantled networks and weapons systems to support its war in Ukraine. US prosecutors are yet to identify US companies that might have sold their technologies and chips to the Uss team knowingly, this affirms how secretive the operation has been.
While the sanctions and curbs have reduced Russian semiconductor imports by 90%, it is still difficult to prevent Russia from getting hold of US chips and technology. It has emerged that Uss and his associates formed a network of shell companies in Europe, the Middle East and Asia that convinced chip makers in the US to sell to them. Once the chips and technology landed in their hands, it was directly shipped to Russia.
Court documents indicate the use of fake purchase orders, business records and shipping documents that helped dupe many American chip companies. Several components made using chips from US companies were seized in a Russian weapons platform in Ukraine.
It is unlikely that the US and its allies will find a way to close down all the loopholes. A report by the Royal United Services Institute indicates that Chinese companies with access to US technology and chips are using the opportunity to purchase the same and sell to their Russian counterparts.
Semiconductors War
Semiconductors are the latest frontier in the ever-growing tussle between Washington and Moscow. They are crucial to Russia sustaining its war in Ukraine. While Russia has been using all sorts of ways to gain access to the chips and technologies, its supply channels are becoming thinner and thinner. Its stockpiles are also shallow, which could strain its push.
On the other hand, Ukraine’s government has been urging the US chip giant to stop producing microchips that Russia uses to support its satellite navigation system. Qualcomm and Broadcom ending the production of the crucial could pile more pressure on Russia who
However, the US is finding it’s hard to urge China, the UAE and other countries to stop supplying Russia with chips and other technologies. While the US and the EU have sanctions on Russia, the UAE insists it only adheres to internal laws and sanctions imposed by the UN. China, on its part, insists it is not aware of any details concerning the chips issue.