Chinese intermediaries funnel US chips into Russia

Companies from Hong Kong and mainland China are shipping large amounts of US-made semiconductors to Russia, according to an investigation by the Nikkei. Semiconductor import records obtained by the newspaper show that 740 million dollars worth of semiconductors manufactured by US companies crossed the Russian border from 24 February to 31 December 2022. About 75 percent of the associated transactions, worth 570 million dollars, were shipped from mostly small and mid-sized companies based in Hong Kong and mainland China.

Aiming to weaken Russia’s ability to wage war, the US banned the export of most American semiconductors to Russia immediately after the invasion of Ukraine on 24 February last year. Many countries have followed suit, but it has already become clear that the Russians found ways to circumvent the ban. Despite Western chipmakers suspending all shipments to Russia and Belarus, rogue elements in the distribution chain are ignoring the restrictions.

Companies found on Russian import records include Intel, AMD, Texas Instruments, Analog Devices and On Semiconductor.