advertisement
Forums

The Forum is sponsored by 
 

AAPL stock: Click Here

You are currently viewing the Tips and Deals forum
China dumping dud chips on Russia (because Russia can’t get the good stuff due to sanctions)….
Posted by: Carnos Jax
Date: October 18, 2022 11:11PM
[www.theregister.com]

Quote

The failure rate of semiconductors shipped from China to Russia has increased by 1,900 percent in recent months, according to Russian national business daily Kommersant.

Quoting an anonymous source, Kommersant states that before Russia's illegal invasion of Ukraine the defect rate in imported silicon was two percent. Since that war commenced, Russian manufacturers have apparently faced 40 percent failure rates.

Even a two percent defect rate is sub-optimal, because products made of many components can therefore experience considerable quality problems. Forty percent failure rates mean supplies are perilously close to being unfit for purpose.

According to Kommersant, Russian electronics manufacturers are not enjoying life at all because, on top of high failure rates, gray market gear doesn't flow with the same speed as legit kit and supply chains are currently very kinked indeed inside Russia.

The newspaper lays the blame on economic sanctions that have seen many major businesses quit Russia. Gray market distributors and other opportunistic operators have been left as the only entities willing to deal with Russian businesses.

Gray market folks are not renowned for their sterling customer service nor their commitment to quality. They get away with it because buyers of products with – ahem – unconventional origins self-incriminate if they complain to authorities.

Perhaps they're even dumping dud product on Russian buyers, knowing that they can't easily access alternatives.

If 40 percent of silicon sourced from China is indeed kaput, it's an interesting expression of the "friendship without limits" that Moscow and Beijing declared in February 2022. It's also an oddity, given China's oft-stated ambition to crush corruption, modernize its economy, and focus only on quality development of world-leading products.

China has used diplomatic language that makes it plain it does not entirely approve of Russia's illegal invasion of Ukraine – but the Middle Kingdom also doesn't entirely mind Russia's international isolation. It means Chinese companies' export prospects improve at a time when most of the world's liberal democracies have shut the door on Huawei, ZTE, and other high-tech Chinese companies.

Moscow, meanwhile, needs to pump out more kit to sustain its illegal invasion. Semiconductors are a critical element of that effort, so if failure rates are high whoever is sending dodgy products to Russia is hampering the not-a-war effort.
Options:  Reply • Quote
Re: China dumping dud chips on Russia (because Russia can’t get the good stuff due to sanctions)….
Posted by: RgrF
Date: October 19, 2022 12:45AM
On first glance this seems like pure speculation with perhaps an agenda. I'm reminded of Kennedy's admonition following the end of the harrowing Cuban Missile Crisis:

(this is a paraphrase)
... all must avert those confrontations which bring an adversary to a choice of either a humiliating defeat or a nuclear war



Edited 1 time(s). Last edit at 10/19/2022 01:06AM by RgrF.
Options:  Reply • Quote
Re: China dumping dud chips on Russia (because Russia can’t get the good stuff due to sanctions)….
Posted by: tuqqer
Date: October 19, 2022 08:59AM
To be fair, those chips do work 60% of the time. That's more that half. So, thumbs up.



M1 2020 Mac mini (16G 2T) Ventura 13.x Dual 25" Acer 1440p LCDs M1 2020 13" MBAir (256G 8G)
Options:  Reply • Quote
Re: China dumping dud chips on Russia (because Russia can’t get the good stuff due to sanctions)….
Posted by: August West
Date: October 19, 2022 11:51AM
Quote

...according to Russian national business daily Kommersant.

Stopped there.



“There comes a point where we need to stop just pulling people out of the river. We need to go upstream and find out why they’re falling in."

Options:  Reply • Quote
Re: China dumping dud chips on Russia (because Russia can’t get the good stuff due to sanctions)….
Posted by: Carnos Jax
Date: October 19, 2022 12:04PM
Quote
August West
Quote

...according to Russian national business daily Kommersant.

Stopped there.

Yeah, made me pause. To what advantage would they have to report it?
Options:  Reply • Quote
Re: China dumping dud chips on Russia (because Russia can’t get the good stuff due to sanctions)….
Posted by: Article Accelerator
Date: October 19, 2022 12:06PM
Quote
Carnos Jax
Quoting an anonymous source, Kommersant states that before Russia's illegal invasion of Ukraine the defect rate in imported silicon was two percent. Since that war commenced, Russian manufacturers have apparently faced 40 percent failure rates.
]

Good.
Options:  Reply • Quote
Sorry, only registered users may post in this forum.

Click here to login

Online Users

Guests: 96
Record Number of Users: 186 on February 20, 2020
Record Number of Guests: 5122 on October 03, 2020