U.S. Senator Richard Blumenthal urges semiconductor manufacturers to bolster efforts to prevent the illicit flow of chips into Russian military equipment amidst the ongoing conflict in Ukraine.
Reports reveal U.S.-origin chips persistently appearing in various Russian weaponry despite export controls, prompting scrutiny of major chipmakers including Advanced Micro Devices, Intel Corp, Texas Instruments, and Analog Devices.
Blumenthal, chair of the Senate’s Permanent Subcommittee on Investigations, stresses the need for chipmakers to enhance traceability and accountability measures, given the gravity of the situation.
The subcommittee probes into chipmakers’ compliance with export restrictions established post-Russia’s invasion in 2022, uncovering significant rises in exports that potentially evade regulatory oversight.
Testimonies during the hearing shed light on the channels through which U.S. chips find their way into Russian weaponry, often via third-country distributors. Components originating from countries like China, Malaysia, and the Philippines reach Russia through various intermediaries, including Turkey, the UAE, and neighboring nations.
Senator Ron Johnson highlights the persistent challenge of sanctions evasion, emphasizing the necessity for comprehensive strategies to combat illicit chip diversion effectively.
In response, chipmakers affirm their commitment to regulatory compliance and prevention of unauthorized chip flow through contractual obligations and proactive measures.
Intel underscores its contractual requirements for customers and distributors to adhere to regulations, coupled with efforts to monitor and mitigate potential distribution issues.
Similarly, AMD expresses openness to bolstering public-private partnerships to combat illicit chip diversion, taking swift action against unauthorized shipments.
Texas Instruments emphasizes its significant investment in resources to prevent chip flow to malicious actors, while Analog Devices outlines proactive measures to mitigate gray market risks and collaborate with law enforcement agencies.
Despite concerted efforts, the challenge of preventing unauthorized chip diversion remains complex, underscoring the ongoing need for stringent oversight and collaboration across industry stakeholders.
