TSMC quits selling chips to Russia and prohibits resale

AMD and Intel have suspended deliveries to Russia. This was confirmed by a representative of the Association of Russian Developers and Electronics Manufacturers (ARPE). Also, TSMC is one of the largest semiconductor manufacturers in the world and announced yesterday that it fully supports the Taiwanese government’s sanctions against Russia. As a result, TSMC will not export chips to Russia. The company will also review its production chain to ensure that its products do not enter the country through third parties.

TSMC supplies chips to almost everyone

The semiconductor manufacturer does not count Russia among its main customers, so the export ban does not affect the Russian government much. A serious issue could be TSMC’s decision to ban the country’s tech companies and government agencies from reselling to Russia.

According to the Taiwanese government, sales to Russia and Ukraine combined account for less than 1% of TSMC’s total revenue. However, the manufacturer will monitor the production chain of devices equipped with its semiconductors and prevent customers from selling to Russia. Those who violate this will also be barred from TSMC sales. And this is where things can get complicated for those who have suffered the sanction. Tech giants like Apple, Qualcomm, MediaTek, AMD, and NVIDIA are customers of TSMC.

Companies such as Apple, Qualcomm, MediaTek, AMD, and NVIDIA cannot sell to Russia

Last Thursday, the Bureau of Industry and Security (BIS) of the US Department of Commerce issued a final rule “Implementation of Sanctions Against Russia Under the Export Administration Regulations (EAR) Regulations,” which includes items such as microelectronics on the new Commercial Control List (CCL) license.