Russian CPUs Reported to be in High Demand as Prices Climb

[T0@st]

Russian business news outlet Kommersant has learned from industry figures that prices of natively-designed computer processors have been on the rise since the beginning of 2023. Domestic manufacturers of PC, server and storage systems are requiring greater supplies of CPUs designed by Baikal Electronics and MCST - the publication posits that growing demand and logistical issues have become the root cause of recent climbs in cost - individuals involved in the computer hardware supply chain have suggested that some processor models have doubled in price. Sergey Ovchinnikov, the chief executive of Norsi-Trans (a server and data storage firm) provided comment: "Production of Russian chips at foreign fabs has become more complex, leading to extended logistics chains and, consequently, an increase in the cost of the final component." International trade sanctions have not prevented the arrival of fresh silicon into the region - Ovchinnikov claims that an unnamed foundry is able to supply (likely via proxy) Russian developers with computer processors.

Kommersant's investigation found out that Baikal's BE-T1000 CPU is now sold for roughly $110 (8900 Rubles) at a popular computer hardware e-tailer (ChipDip) in the region. The very basic dual core MIPS32r5 (28 nm) processor was readily available for $50 (3990 rubles) back in 2018, so its price has risen by 220% in recent times. TSMC was contracted as the manufacturer of Baikal's BE-T1000 CPU, and the Taiwanese foundry started producing these SoCs in 2016. A Baikal Electronics representative has denied any involvement in driving up MSRP, and states that it is up to distributors and retail outfits to determine prices. The company suspects that very old stock is being sold at inflated rates - Kommersant was unable to contact anyone at ChipDip for a statement.



Maxim Koposov, chief executive at Promobit, has observed that Baikal Electronics and MCST CPU prices have increased across the board, and it is difficult to compete in a market where: "more and more companies are announcing products based on Russian processors." He admits that his organization is relying on the supply of grey import x86-based CPUs (but does not specify whether these are Intel or AMD units). Koposov states that parts of his latest lineup of PCs, servers, and storage subsystems (Bitblaze) products are built on non-domestic hardware. His reasonings are simple: "No one wants to work at a loss or break even, especially given the possibility of including products based on foreign components in the register of the Ministry of Industry and Trade."

View at TechPowerUp Main Site | Source

 

[Icon Charlie]

Because of the conflict, there is a serious embargo on everything electronic and people making components as such. It is gotten to the point that Russian Military are tearing apart electronic components off from Western Made (first) appliances to get what they need.

Russian tanks are using chips from household appliances due to sanctions

In a Senate hearing on Wednesday, the US Secretary of Commerce Gina Raimondo cited Ukrainians who found semiconductors from dishwashers and refrigerators in Russian tanks. Ukrainian officials...

www.techspot.com

Is Russia Really Buying Home Appliances To Harvest Computer Chips For Ukraine-Bound Weapons Systems?

After Commerce Secretary Gina Raimondo told lawmakers last spring that Russia had been harvesting semiconductors from dishwashers and refrigerators for its military equipment, the story made the rounds in the press. But there’s little evidence it’s a widespread practice.

www.forbes.com

Regardless of my statement above, what is known that the embargo is putting the screws on the Russian Economy. And there are companies that will take advantage of that.

 

[Double-Click]

Fabs being "complex" is certainly one way to put it when you're a pariah-state / ally to the greatest extestential threat Taiwan has.

 

[Why_Me]

Fabs being "complex" is certainly one way to put it when you're a pariah-state / ally to the greatest extestential threat Taiwan has.

I'm trying to come up with a list of countries that don't trade with China.

 

[Denver]

Because of the conflict, there is a serious embargo on everything electronic and people making components as such. It is gotten to the point that Russian Military are tearing apart electronic components off from Western Made (first) appliances to get what they need.

Russian tanks are using chips from household appliances due to sanctions

In a Senate hearing on Wednesday, the US Secretary of Commerce Gina Raimondo cited Ukrainians who found semiconductors from dishwashers and refrigerators in Russian tanks. Ukrainian officials...

www.techspot.com

Is Russia Really Buying Home Appliances To Harvest Computer Chips For Ukraine-Bound Weapons Systems?

After Commerce Secretary Gina Raimondo told lawmakers last spring that Russia had been harvesting semiconductors from dishwashers and refrigerators for its military equipment, the story made the rounds in the press. But there’s little evidence it’s a widespread practice.

www.forbes.com

Regardless of my statement above, what is known that the embargo is putting the screws on the Russian Economy. And there are companies that will take advantage of that.

Sanctions don't have the desired effect if they can buy almost any western product from China or India.

 

[Double-Click]

Being a staunch ally is not the same as trading with.

 

[lemonadesoda]

I think the news feature and quotes have lost a lot in translation. But the gist is: even with Russian designed CPU/x86 the basics of supply, demand, and embargo mean even domestic product prices have gone up so much as to make equipment very expensive.

I'm trying to come up with a list of countries that don't trade with China.

I think in mathematics it's called the Null set ∅

 

[A&P211]

Some say to this day that @Why_Me is still trying to count the countries.

 

[caroline!]

Disregarding the flame-bait comments there's two big things that are wrong here, one is companies still importing western products and the other relying on ROC foundries, at one point the pressure put on them by the US will be too high and they'll have to stop manufacturing these chips "or else" they'll lose contracts with western corporations, the choice is a no-brainer for them as those contracts mean trillions of dollars for them. And importing via India/PRC will become too costly to make sense at one point, $2000 for an i3 kind of costly, or an "Ultra 3" in the new naming scheme ^^

The Soviet solution to the problem would be "make things without chips", and it might work though the alternatives would be much more primitive compared to a similar western product. I have one example and it involves fluorescent lights, I won't explain how those work but there's a component inside called ballast which is basically a big coil of thin wire, well, at one point the design was rendered obsolete in western countries and was replaced with a transistor alternative which nowadays is a small plastic box with a bunch of electronics inside, but there was (or is) a factory in Russia that still made them, you compare one made in the 1980s and other from 2020 and they're exactly the same inside, the same happened to tubes, like, who actively manufactures classic tubes in western countries? nobody or almost nobody as they've all gone the LED is better route and get LEDs from China put them inside a plastic tube and call it a day, well, Russia still makes tubes, they're not sold under western brands anymore though, I have a bunch of Osram from 2020 but those are probably the last as Osram itself isn't offering them anymore in any country.

They have tech though not to manufacture "stuff that needs chips", in a nutshell. What do lamps have in common with smartphones and computers? you can manufacture them but they won't be as good as that of the competition, they'll work though, to an extent. If you convince people they don't *need* an smartphone then even better, your StarTAC clone factory will be overwhelmed by demand in a month. Imagine if CRT monitors and valves make a comeback, I'm pretty sure the Russians haven't trashed all the infrastructure required to manufacture them, there's plenty of glass too. The 80's live on.

 

[Chaitanya]

Sanctions don't have the desired effect if they can buy almost any western product from China or India.

Not from China or India but central Asian countries. Also its the western countries who imposed sanctions are doing business with Russia(in many cases openly).

 

[R-T-B]

Regardless of whether some businesses still do illicit trading with Russia, the reality is the noose has been signifigantly tightened, so of course domestic tech in Russia is seeing increased demand.

 

[evernessince]

Disregarding the flame-bait comments there's two big things that are wrong here, one is companies still importing western products and the other relying on ROC foundries, at one point the pressure put on them by the US will be too high and they'll have to stop manufacturing these chips "or else" they'll lose contracts with western corporations, the choice is a no-brainer for them as those contracts mean trillions of dollars for them. And importing via India/PRC will become too costly to make sense at one point, $2000 for an i3 kind of costly, or an "Ultra 3" in the new naming scheme ^^

The Soviet solution to the problem would be "make things without chips", and it might work though the alternatives would be much more primitive compared to a similar western product. I have one example and it involves fluorescent lights, I won't explain how those work but there's a component inside called ballast which is basically a big coil of thin wire, well, at one point the design was rendered obsolete in western countries and was replaced with a transistor alternative which nowadays is a small plastic box with a bunch of electronics inside, but there was (or is) a factory in Russia that still made them, you compare one made in the 1980s and other from 2020 and they're exactly the same inside, the same happened to tubes, like, who actively manufactures classic tubes in western countries? nobody or almost nobody as they've all gone the LED is better route and get LEDs from China put them inside a plastic tube and call it a day, well, Russia still makes tubes, they're not sold under western brands anymore though, I have a bunch of Osram from 2020 but those are probably the last as Osram itself isn't offering them anymore in any country.

They have tech though not to manufacture "stuff that needs chips", in a nutshell. What do lamps have in common with smartphones and computers? you can manufacture them but they won't be as good as that of the competition, they'll work though, to an extent. If you convince people they don't *need* an smartphone then even better, your StarTAC clone factory will be overwhelmed by demand in a month. Imagine if CRT monitors and valves make a comeback, I'm pretty sure the Russians haven't trashed all the infrastructure required to manufacture them, there's plenty of glass too. The 80's live on.

It's not feasible for everyone to switch back to using old technology given the enormous power draw jump that would bring and that many modern services simply cannot run on older tech. It might not be so hard for people to drop cell phones from their lives but critical businesses like hospitals would loose 90% of their machines. Everything from product design, manufacturing efficiency, infrastructure design, pretty much everything would be negatively impacted. Obviously they'd completely miss the upcoming AI boom as well, which is set to provide more increases in efficiency and access to more advance technology and medicines.

 

[Dr. Dro]

It's not feasible for everyone to switch back to using old technology given the enormous power draw jump that would bring and that many modern services simply cannot run on older tech. It might not be so hard for people to drop cell phones from their lives but critical businesses like hospitals would loose 90% of their machines. Everything from product design, manufacturing efficiency, infrastructure design, pretty much everything would be negatively impacted. Obviously they'd completely miss the upcoming AI boom as well, which is set to provide more increases in efficiency and access to more advance technology and medicines.

As I understand, sanctions do not apply to humanitarian sectors such as healthcare, pharmaceutical, etc. Honestly, the demand for locally manufactured processors is down to a "what if" scenario; "what if" WW3 breaks out and Russia truly gets completely cut off? What of our business? That's the thought driving up demand here; it is for those who consider these semiconductors not only insurance, but also a lifeline to their business.

The Chinese will happily sell to the Russians and any consumer electronics such as phones, computers, tablets, etc. are and have remained available in the Russian market, including those of the latest generation. The government will not make it difficult for Russian citizens to import these goods for obvious reasons.

 

[ReallyBigMistake]

Putin should have taken a few billion dollars from all the oil they sold a few years and put it in trying to make Russian fabs so they don't rely on TSMC or even China.
Samsung for a long time paid IBM for licenses to use their tech in making their own fabs until they had enough expertise to surpass them. Russia should have done this with some European companies that would have sold their tech for money. I doubt the USA government would have allowed IBM or any other US firm from selling fab tech to Russia

 

[AusWolf]

Sanctions on the import of Western products encourages Russian companies to thrive. Who would have thought? (Sarcasm)

 

[kondamin]

I hope they use the extra income to push r&d hard so they can get more performance out of older nodes.

 

[Double-Click]

^ Are you kidding? This is Russia, and for all intents and purposes it's Soviet Russia.
Until Putin is dead or in jail, every facet of their infrastructure can crumble to dust.

 

[zlobby]

How is a $50 to $110 increase 55%?