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Semiconductors
TechTech War

Ukraine invasion: Chinese chip makers a wild card in US-led sanction push against Russia

  • Washington said it planned to implement export controls to cut Russia off from semiconductors crucial to the military
  • US rules supposedly apply to all companies – including those in China – that use American technology, such as SMIC

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A Chinese flag near the Semiconductor Manufacturing International Corp (SMIC) headquarters in Shanghai, China.  It remains uncertain whether Chinese chip makers will comply with US-led sanctions barring Russia from access to critical semiconductors. Photo: Bloomberg
Bloomberg
The Biden administration and EU’s call for sanctions against Russia will jeopardise the country’s ability to buy semiconductors and other technology – and it could affect military technologies in the future.

The US government on Thursday said it will implement export controls designed to cut Russia off from semiconductors and other advanced technology crucial to the military, biotechnology, and aerospace industries. Allies such as Japan, Taiwan and South Korea – all key chipmaking countries – have either followed suit or indicated that they will.

Brussels on Friday morning confirmed its sanctions would attempt to impact Russia’s supply chain.

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“We will hit Russia’s access to important technologies it needs to build a prosperous future – such as semiconductors or cutting-edge technologies,” European Commission President Ursula von der Leyen said.

More uncertain is whether Chinese chip companies, particularly Semiconductor Manufacturing International Corp, will also cut off Russia. Shanghai-based SMIC, as the company is known, makes chips that are less advanced than those from the likes of Taiwan Semiconductor Manufacturing Co, but they are sophisticated enough for at least some military applications.

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While China is not joining in with Russia sanctions, the US rules cover companies anywhere in the world that use American technology, including software. SMIC uses equipment from American suppliers like Applied Materials Inc to make its chips.

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