Technology embargo from the USA to Russia: The supply of semiconductor chips is stopped

As the tension between Russia and Ukraine continues, US President Joe Biden announced his new technological sanctions against Russia. “We will disrupt their ability to compete in a 21st century economy,” Biden said on Thursday, saying they will cut off the supply of computer chips sent to Russia that power cars, smartphones and even military equipment.

The new embargo may not affect Russia

As part of the new US embargo, the sale of any chips developed with the country’s technology to Russia will be prohibited. However, the USA, which applied the same law to the Chinese phone manufacturer Huawei Technologies, prevented the company’s chip sales, causing the brand to suffer large losses.

Although the US has a small share in global semiconductor production, it ranks high in design and chip patents. While many sources think that Russia, which supplies 70 percent of its chip supply from China, will not be affected by the US embargo, while we can say that the chips produced by China are good for cars and smart devices, but weak for military applications.

Also, some analysts fear that Russia, which provides the global supply of neon gas and palladium, which are vital components in chip manufacturing, may retaliate against US sanctions by taking advantage of its market position.