China sells partially defective chips to Russia

Some Chinese suppliers are said to sell junk chips to Russia and thus circumvent embargoes.

The global response to Russia’s war of aggression against Ukraine in the form of embargoes has largely cut off the country from supplies covered by the relevant sales bans. Accordingly, Russia can no longer simply order new processors from Intel or AMD but has to try other ways to get the coveted components through intermediaries. According to the Russian business newspaper Kommersant, the country is also trading in significantly more scrap chips. The proportion of faulty components has increased from one to two percent to now up to 40 percent. Most of the chips come from China, other countries would no longer supply the country through intermediaries.

First Corona, then lack chips, now embargo

The result of this development, according to an industry insider quoted in the newspaper, is that the final cost of Russian electronics will double while production times increase. The situation, which was already tense due to the corona pandemic, has become even worse. As a reaction, one has to increasingly switch to unreliable suppliers whose products do not have the desired quality.

Russian state denied

This development is denied by the government: the Ministry of Industry and Trade has no information that defective components are on the rise. However, this also fits with the state doctrine that the sanctions imposed by Western countries will not have a major impact on the Russian economy.

Servers particularly badly affected

It remains unclear which specific components are involved in the defective deliveries. In the server area in particular, however, high error rates could have a particularly strong impact on production. In connection with this, the costs for such systems would also increase enormously.

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