{"id":19938,"date":"2022-03-22T11:29:00","date_gmt":"2022-03-22T15:29:00","guid":{"rendered":"https:\/\/a2globalelectronics.com\/?p=19938"},"modified":"2022-03-31T12:28:19","modified_gmt":"2022-03-31T16:28:19","slug":"russian-trade-restrictions-impact-semiconductor-sales","status":"publish","type":"post","link":"https:\/\/a2globalelectronics.com\/ja\/electronics-news-trends\/russian-trade-restrictions-impact-semiconductor-sales\/","title":{"rendered":"WILL RUSSIAN TRADE RESTRICTIONS IMPACT SEMICONDUCTOR SALES AND SUPPLY CHAIN?"},"content":{"rendered":"\n[et_pb_section fb_built=”1″ theme_builder_area=”post_content” _builder_version=”4.14.8″ _module_preset=”default”][et_pb_row _builder_version=”4.14.8″ _module_preset=”default” theme_builder_area=”post_content”][et_pb_column _builder_version=”4.14.8″ _module_preset=”default” type=”4_4″ theme_builder_area=”post_content”][et_pb_text _builder_version=”4.14.8″ _module_preset=”default” theme_builder_area=”post_content” hover_enabled=”0″ sticky_enabled=”0″ inline_fonts=”Rubik”]
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Complex global dynamics will determine if Russian trade restrictions impact semiconductor sales on a global scale. <\/span><\/h2>\n

Global powers <\/span>and private companies alike <\/span>are <\/span>suspending business <\/span>as a primary strategy <\/span>to quell <\/span>Russia\u2019s invasion of Ukraine. <\/span>T<\/span>he United States, European Union<\/span>, United <\/span>Kingdom, <\/span>and other <\/span>countries have imposed <\/span>sanctions <\/span>and export controls<\/span>, <\/span>restricting the sale of technology <\/span>\u2014 <\/span>including semiconductors. <\/span><\/p>\n

We\u2019re watching closely, not only to determine this strategy\u2019s efficacy against Russia, but also for <\/span>overall market imp<\/span><\/a>act<\/a>. In an already complex global electronics market, how will such trade <\/span>restrictions impact semiconductor sales and supply chain? <\/span><\/p>\n

Current sanctions against Russia<\/span><\/h3>\n

While the situation is fluid and has the potential to change daily, <\/span>wide<\/span>–<\/span>ranging sanctions <\/span><\/a>are <\/span>currently <\/span>in effect against Russ<\/span>ia. For the European Union, these sanctions include restricting <\/span>b<\/span>ank<\/span>ing, energy sector goods and services, oil refining <\/span>technologies<\/span>, aviation and space <\/span>technologies, as well as semiconductor and leading-edge technologies. <\/span><\/p>\n

The United Kingdom has frozen assets on Russian banks and individuals and suspended all dual<\/span>–<\/span>use pro<\/span>ducts. The United States has imposed restrictions on E<\/span>xport Administration Regulation <\/span>(EAR) <\/span>items <\/span>\u2014 <\/span>including <\/span>EAR99 <\/span>items, <\/span>which are mostly low<\/span>–<\/span>technology consumer goods. <\/span>Previously, most EAR99 items did not require a license<\/span>. <\/span><\/p>\n

Russian trade restrictions i<\/span>mpact semiconductor sales with a ripple effect<\/span><\/h3>\n

<\/span>One of the repercussions from trade restrictions is United States and China facing off over <\/span>sanctions against Russia. <\/span>Currently the U.S. is controlling <\/span>not only tech products produced by <\/span>American <\/span>companies, but <\/span>also <\/span>any company worldwide that uses <\/span>American <\/span>technology <\/span>or <\/span>software<\/span>. This would effectively extend sanctions to many Chinese companies. <\/span><\/p>\n

Tracking the nuanced ways <\/span>Russia trade restrictions <\/span>impact <\/span>semiconductor <\/span>sales <\/span><\/h3>\n

At first glance, th<\/span>e <\/span>immediate <\/span>impacts for the semiconductor market appear to be small, based on <\/span>Russia\u2019s weak demand for semiconductors. A <\/span>statement <\/span>from the Semiconductor Industry <\/span>Association <\/span><\/a>(SIA)<\/a> addressing sanctions on Russia noted, \u201c<\/span>Russia is not a significant direct <\/span>consumer of semiconductors, accounting for less than 0.1% of global chip purchases, according <\/span>to the World Semiconductor Trade Stati<\/span>stics (WSTS) organization. The broader Russian ICT <\/span>market totaled only about $50.3 billion out of the $4.47 trillion global market, according to 2021 <\/span>IDC data.\u201d<\/span><\/p>\n

<\/span>The Russian market is not purchasing leading<\/span>–<\/span>edge technology, <\/span>nor are they purchasing in large <\/span>volumes compared to other countries. <\/span>But due to the nature of older chip designs as critical <\/span>components of many long<\/span>–<\/span>tail product lines, the drop in demand could actually have an impact. <\/span><\/p>\n

Protocol <\/em>magazine <\/span><\/a>recently conducted an in<\/span>–<\/span>depth review of Russia\u2019s chip purchases, with a <\/span>focus on the past few years. The data indicate<\/span>s <\/span>that Russia does in fact buy many a<\/span>nalog chips <\/span>with older designs\u2014designs that feature prominently into the current shortages in the automotive industry and beyond. In fact, many discrete manufacturers rely on these older chips.<\/p>\n

So, in theory, cutting off Russia\u2019s access to these semiconductors could result in an expansion of product on the market for manufacturers looking for older designs. The result might play out as additional product on the market for manufacturers in need of these components.<\/p>\n

To summarize:<\/strong> The situation remains fluid, and we are watching closely to determine if Russian trade restrictions impact semiconductor sales on a global scale.<\/p>\n

Read more:<\/strong><\/p>\n