4 out of 10 Chinese Semiconductors Exported to Russia Are Defective

Defect Rate Soars from 2% Range to 40% Range After Western Sanctions on Russia
China's Semiconductor Exports to Russia Increase by 209% Year-on-Year

[Image source=Pixabay]

[Asia Economy Reporter Park Hyun-joo] A report has emerged that 4 out of 10 Chinese-made semiconductors exported to Russia after Western sanctions are defective.

On the 21st, Hong Kong's South China Morning Post (SCMP), citing the Russian economic daily Kommersant, reported that the defect rate of Chinese semiconductors exported to Russia was 2% before March, but soared to 40% after Western sanctions. However, according to the report, the Russian Ministry of Industry and Trade stated that it has no information related to this.

The media views the sharp increase in semiconductor defect rates as a result of Western sanctions. After Russia invaded Ukraine in February, the United States and other Western countries formalized sanctions against Russia. As a result, imports of equipment and software from authorized U.S. companies were completely blocked, and imports through lower-quality Chinese companies increased. Analysts from the Mercator Institute for China Studies (MERICS), a German think tank, evaluated that "(the sharp rise in defect rates) indicates the difficulties Russia faces in surviving under G7 sanctions."

In fact, according to a MERICS report from last August, Chinese semiconductor exports to Russia from March to June increased by 209% compared to the same period last year. The report attributed this "dramatic growth" to exports by semiconductor repackaging companies not exposed to the U.S. and European Union (EU) markets.

Since the Western sanctions, exports of not only semiconductors but also other Chinese products have increased. According to the report, China's exports to Russia last month rose 26.5% compared to the same month last year. SCMP stated, "The authenticity of the Kommersant report cannot be confirmed," but added that "the report is attracting attention on social media and international media."

This content was produced with the assistance of AI translation services.