Thursday, May 18th 2023
Russian CPUs Reported to be in High Demand as Prices Climb
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."
Sources:
Tom's Hardware, Kommersant RU
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."
17 Comments on Russian CPUs Reported to be in High Demand as Prices Climb
www.techspot.com/news/94589-russian-tanks-using-chips-household-appliances-due-sanctions.html
www.forbes.com/sites/erictegler/2023/01/20/is-russia-really-buying-home-appliances-to-harvest-computer-chips-for-ukraine-bound-weapons-systems/?sh=318ea500588e
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.
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.
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.
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
Until Putin is dead or in jail, every facet of their infrastructure can crumble to dust.