Russia chip crisis has deepened since the sanctions from USA , and one of the worst hit of this sanction has been Russia’s primary chip maker “Baikal”. Reports are suggesting that Baikal Electronics, Russia’s primary chipmaker is no longer able to meet the country’s chip demands and also 50% of the chips they are producing is defective in some way or other. Russia has now started focusing on its chip market and it would be interesting to see whether they will be able to catch up or not?

Baikal Electronics , Russia’s primary chipmaker was one of Russia’s major chip developers. Previously they used to get the production of their processors done by TSMC only , but after the sanctions on Russia from US and UK governments has forced them to produce their chips by themselves only as TSMC has denied to produce chips for them. This problem was somewhat solvable , but one of the main problem with which they got hit was unable to use the Arm Technology. if you don’t know about Arm , then let me tell you Arm stands for Advanced Risc Machine and they are the ones who own the Instruction set used by most of the processor manufacturers. Previously Russia’s primary chip maker used to use it in house developed Instruction Set Architecture(ISA), Baikal-T Series MIPS.

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Russia Chip Crisis.

Talking about the major issue that they are facing right now is that they are unable to manufacture defect free chipsets , Reports suggest that 1 out of 2 chips manufactured are defective , i.e a defect rate of 50%. After research we found several reasons behind it , primary reason being having no experience in the chip production . Despite having all the required machines that are not able to configure them just the right way. Also absence of completely trained engineers for the production of chipsets is further aggravating the situation for Russia’s primary chipmaker.

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How is Russia’s largest chipmaker dealing with it?

Baikal electronics “Russia’s primary chipmaker” has announced its partnership with other major domestic players for the manufacturing of chips. To take some name they may partner with “Milandra” and “Mikron” in Zelenograd. One thing that we found was that none of these chipmakers have the expertise to work on the 28nm nodes that Baikal electronics is demanding , it seems that Baikal has partnered with Chinese chip manufacturers for the 28nm node.

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How is Russia dealing with US sanctions?

The major reason behind failing of the Russia’s larget chipmaker was the unavability of Russian government in the chip manufacturing segment. They were too focused on Military operations . But things have started changing since 2022. In 2022 they announced a massive whooping investment of $38 Billion to boost the Russia’s domestic semiconductor industry. Also they announced an investment of $5 billion for speeding up the production of chipsets and development of better node technology.

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But the major question is will this be fruitful? See , as far as i am able to see the speed at which they are working , they still will be 19 years behind TSMC , as they have took a target of producing 28 nm node chipsets by 2030 , which TSMC had done in 2011.