[News] Intel and AMD Imports to Russia Plunge 90%, Yet Local Firms Say Chips Still Flow

The impact of U.S. export restrictions on advanced processors remains in question, with a recent Tom’s Hardware report raising concerns over Russia’s access to chips. Citing Russian outlet Kommersant, Tom’s Hardware notes that FCS Russia (the Federal Customs Service of Russia) recorded a steep drop in CPU imports from AMD and Intel—down 81% and 95%, respectively. The report further states that chip imports in 2024 amounted to around 37,000 units worth 439 million Rubles, a sharp decline from the 537,000 units valued at approximately 6.3 billion Rubles in 2023.

The report notes that Russia has faced U.S. export restrictions since its invasion of Ukraine in 2022. However, it also underscores the widespread belief that a black market for advanced American technology persists—allowing Russian companies and individuals to acquire such products, albeit through indirect channels rather than directly from the U.S.

For example, as the report indicates, Hong Kong remains a key hub for smuggling restricted goods into Russia, with one office address alone linked to the flow of chips worth around USD 4 billion.

Some Indian companies have also been found involved in the smuggling of AI chips, sourcing them from Malaysia and rerouting them to Russia via India, the report notes. According to a Bloomberg report from late 2024, Mumbai-based pharmaceutical firm Shreya Life Sciences exported 1,111 units of Dell’s high-end PowerEdge XE9680 servers to Russia. These servers are said to be equipped with advanced chips made by NVIDIA or AMD.

As a result of these black-market channels, some Russian companies say that chip supply is not an issue. In fact, many claim that availability has increased for the third year, as noted by Tom’s Hardware. Anton Gromov, an executive at a Russian tech firm, stated that “processors” often don’t appear on delivery documents, meaning FCS data may not reflect actual conditions. He also noted that while prices have edged up, the cost of commonly used chips has remained relatively stable, according to Tom’s Hardware.

Doubts Over the Effectiveness of U.S. Chip Controls

Beyond Russia’s black market for chips, U.S. export restrictions on AI semiconductors to China have also sparked widespread debate. As noted by CNBC, NVIDIA CEO Jensen Huang criticized the policy, calling it “a failure” that has hurt U.S. companies more than it has China, since the restrictions are expected to fuel demand for China’s domestic alternatives, such as Huawei, which is actively developing its own AI chips.

Read more

• [News] Jensen Huang: NVIDIA’s China Market Share Plummets from 95% to 50% amid U.S. Export Curbs
• [News] Indian Drug Company Aids Russia in Accessing NVIDIA Chips Amid Restrictions

(Photo credit: Intel)