Friday, June 03, 2022

Russia has a chip problem

The New York Times has done some excellent reporting on Putin's full-scale war on Ukraine. (At least one reason might be the fact that Natalia Yermak, working in Kiev on a cartoon series for children about brave bunnies, joined its staff in March. She's fluent in Ukrainian and Russian and has a "working proficiency" in English, which would be a great advantage when helping linguistically challenged Americans.) Most recently, the Times reports that Russia is running into the same problem that has plagued auto manufacturers worldwide: it has run short of computer chips! As the newspaper explains:

"Since the U.S. and its Western allies announced restrictions on technology exports in February, Russia has had difficulty obtaining microchips to replenish its supply of precision guided munitions, according to one senior U.S. official. This has given the U.S. and its allies leverage against Russia.... When asked this week if a chip shortage was crippling the Russian military, Gina Raimondo, the secretary of commerce, who oversees export controls, said that the answer was 'an unqualified yes.'

"U.S. exports of advanced technology to Russia are down by more than 90 percent since the start of the war, Raimondo said."

Even worse for Russia, American sanctions apply to some high-tech goods that are manufactured anywhere that use US machinery, software, or blueprints. Russia produces only half of what it needs along this line. In 2018, the rest was imported, with roughly a third coming from the US, Europe, Japan, Taiwan, Australia, and other countries that have imposed sanctions on Russia. And every nation risks being sanctioned itself if it violates the American curb on exporting microchips and other stuff that depend on US technology. Even China, which like India is stockpiling cheap Russian oil, has sharply cut its exports to the pariah country.


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