Sanctions on semiconductors take a heavy toll on Russia's military.
Get ready for a rollercoaster ride through the tech-driven troubles of the Russian army! You see, the boys from Mother Russia can't buy semiconductors from Uncle Sam or EU anymore, thanks to their attack on Ukraine. And it's making their military life all the harder, as a deep dive into a crucial defense company's documents reveals.
The Russian military establishment appears to be heavily reliant on Western semiconductor tech, which means the sanctions are hitting hard post-war-start. "Bild am Sonntag" shared details from NPO VS, a key defense company based in Kazan, southwestern Russia. NPO VS reportedly plays a significant role in supplying the Russian armed forces.
U.S. Semiconductors: The Gold Standard
According to the leaked documents, the Russians are worried about their dependency on Intel, AMD, and Nvidia, among others. Experts are raising the alarm over Russia's vulnerability due to this dependence. Russian chips like Elbrus and Baikal are no match for American semiconductors, alleges a Russian defense manager in an internal memo from March 2022.
The memo states that these Russian chips are behind the competition by at least ten years in terms of performance and energy efficiency, and they're also way more expensive. Ouch!
Economic Ramifications
Berlin-based researchers from DGAP concluded at the start of the war that Russia had invested heavily in its tech infrastructure due to ongoing tensions with the EU and USA, primarily focusing on internet censorship. However, the semiconductor industry didn't make the cut in their national IT strategy.
The Intermediary Hustle
Thanks to sanctions from the USA and EU, Russia can't just go and buy semiconductors directly. They gotta bounce it off some intermediaries – NPO VS uses a fancy scheme for that.
Moscow is scrambling to reduce its chip dependence on the USA, exploring Chinese manufacturers. But even they're not welcomed with open arms, it seems. The bosses are apparently skeptical about a swap from a potential enemy (USA) to another potential enemy (PR China). But come on, Russia's pals with China, right? Isn't that what Putin's said a gazillion times?
Source: ntv.de, chr/AFP
- Semiconductor Sanctions
- Russian Military
- Chip Shortage
- Chip Manufacturers
- China
The Nitty-Gritty
- Chinese Options: China, a significant player in the semiconductor industry, offers alternatives through companies like ZTE and Huawei. However, collaboration with these teams brings challenges due to Western sanctions.
- Other Emerging Markets: Leading semiconductor producers like South Korea and Taiwan are limited in their involvement with supplying Russia's military due to international restrictions and alliances with Western powers.
- Domestic Production: Russia's drive for domestic semiconductor manufacturing is a work in progress, hampered by capacity and expertise limitations compared to global leaders.
In conclusion, while there are some alternatives, the quality of semiconductors from these sources might not measure up to those from Western manufacturers, especially in high-tech military applications. Russia's bet is on domestic production and partnerships with nations like China amid ongoing sanctions and geopolitical pressures.
The Russian military may need to revise their community policy and employment policy, considering the fresh challenges posed by the semiconductor sanctions. Vocational training in domestic semiconductor production might become crucial, as the existing Russian chips are reportedly at least ten years behind Western competition in terms of performance and energy efficiency. Moreover, technology partnerships, such as those with China, might not yield the desired results due to ongoing geopolitical conflicts and Western sanctions.
