U.S. Secretary of Commerce: Global Semiconductor Exports to Russia Plummeted by 90%

According to a report by Reuters on June 29, U.S. Commerce Secretary Gina Raimondo said on Wednesday (June 29) that since the United States and its allies imposed export controls on Russia, global semiconductor exports to Russia have plummeted by 90%.

Speaking at the annual meeting of the Ministry of Commerce, Raimondo also said that the control of the Russian aerospace sector is hitting its ability to generate revenue, resupply, and support military aviation. “Russia may be forced to ground between half and two-thirds of its commercial aircraft in the next four years in order to cannibalize them for spare parts,” she added.

A day earlier, the Biden administration put five Chinese companies on a trade blacklist on Tuesday (June 28) because they were accused of supporting Russia’s military and defense industrial bases.

Raimondo also said that Washington knows that Beijing, as another autocratic regime, is paying close attention to the reaction of the United States. She further warned Beijing, “What if SMIC or other Chinese-based semiconductor companies are found supplying chips to Russia?” she said. “We will shut them down and we can, because almost every chip in the world and in China is made using U.S. equipment and software and I intend to make good on that commitment if it’s necessary.”

Previously, although U.S. officials have said that the CCP has generally complied with international sanctions, the United States will closely monitor compliance and strictly enforce these regulations.