Kommersant: Chinese companies supply massively broken chips to Russia

Russian companies are said to experience a 1900 percent increase in the failure rate of microchips supplied by Chinese companies. Due to sanctions, companies would have no choice but to buy the necessary chips from unreliable parties.

The number of defective components for electronics is said to have risen from two to 40 percent since the invasion of Ukraine, the report said Russian newspaper Kommersant based on anonymous sources from the Russian tech industry. Global sanctions against the country would disrupt supply chains and would force importers to source chips from intermediaries and unofficial suppliers “decreasing the degree of control over product quality.” Due to the high margin of defective chips, higher prices for household appliances are expected in Russia.

The Register indicates that the current geopolitical situation means that Russian companies are dependent on the gray market, where suppliers can get away with mediocre product quality. After all, Russian customers have no other option, as many large tech companies no longer want or are not allowed to deliver their products in Russia after the invasion in Ukraine. Although China would probably not want to impose sanctions on its ally Russia from a political point of view, sanctions from the United States, among others, mean that China also has to limit the export of products to Russia. describes Washington Post.