Intel, AMD reportedly halt industrial processor shipments to Russia
Last week, US Bureau of Industry and Security announced new restrictions on the export of semiconductor technology to Russian industries
Intel and AMD have reportedly suspended chip sales to Russia in the wake of the ongoing crisis in Europe.
Citing two sources with knowledge of the matter, the Russian publication RBC reported on Sunday that the two companies have ceased shipments to Russia in order to comply with the latest restrictions announced by the US Department of the Treasury's Office of Foreign Assets Control (OFAC) and the Department of Commerce's Bureau of Industry and Security (BIS).
The new rules follow Russia's invasion of Ukraine on Thursday.
The American firms have 'verbally notified Russian producers' of the decision, the report added.
Moreover, the Chinese IT firms have also been notified by the local Intel office of a ban on the delivery of the chips.
RBC says the news was confirmed by a representative of the Association of Russian Developers and Electronics Manufacturers (ARPE).
BIS announced new restrictions on the export of semiconductor products and technology to Russian industries on February 25. After the new rules go into effect, the American firms will be required to seek permits from US authorities in order to export BIS-controlled items to Russia, such as PCs, electronics, avionics and aerospace components.
It is expected that the US authorities will only give export permission in extreme circumstances.
The restriction may have a long-term negative impact on Russia's economy since Russian enterprises will be unable to update, or replace server usage for cloud computing and data storage.
The new export restrictions are largely directed at military-grade semiconductors or dual-use chips that may be used for both civilian and military purposes. As a result, most consumer-focused chip sales are unlikely to be affected. However, it is widely assumed that all semiconductor shipments to Russia will be temporarily halted as chipmakers work to determine which customers and products are affected.
The ban will go into force on March 3, although RBC reports that Intel and AMD have already ceased supply.
An Intel official in Russia told the publication that the company is actively monitoring the situation and is enforcing applicable sanctions and export control laws, including new OFAC sanctions and BIS guidelines.
Taiwan-based TSMC, one of the world's major semiconductor producers, has said it would follow export control guidelines on Russia, according to Reuters.
Once the ban is fully implemented, Russia will be forced to seek alternative sources for its semiconductor supply chain, such as China.
There is currently an increasing pressure on US firms to limit their products and services in Russia. Google, Meta and Twitter have recently imposed restriction on Russian state media, including the prohibition on creating advertisements or monetising content.
On Friday, Ukraine's Vice Prime Minister Mykhailo Fedorov urged Apple CEO Tim Cook to limit access to the Apple App Store for Russian Federation nationals. Apple has not responded officially to the request.