Intel Suspends All Business Operations in Russia

A month after halting all chips sales to the country, Intel is now suspending all business operations in Russia.

Days after Russian troops marched into Ukraine and the conflict began, the chipmaker said it was complying with applicable export regulations and sanctions against the country — though US sanctions only initially pertained to the supply of semiconductors for military applications or dual-purpose uses.

A broader decision was taken by Intel in early March when it paused all sales. Now, the company is going a step further.

“Intel continues to join the global community in condemning Russia’s war against Ukraine and calling for a swift return to peace,” the company said in a statement. “Effective immediately, we have suspended all business operations in Russia.”

“Our thoughts are with everyone who has been impacted by this war, particularly the people of Ukraine and the surrounding countries and all those around the world with family, friends and loved ones in the region.

“We are working to support all of our employees through this difficult situational including our 1,200 employees in Russia. We have also implemented business continuity measures to minimize disruption to our global operations,” Intel added.

The importance of the availability of computer chips and the robustness of their supply chains has recently been the focus of US president Joe Biden’s administration, which admits “semiconductors are an essential building block in the goods and products that Americans use every day.”

Russia is likely to feel the loss of such a major chip supplier greatly, along with its ability to maintain steady supply of the latest technology. There are some Russia-based chip designers, though these often rely on foreign manufacturing capability, such as from Taiwan-based TSMC, which has expressed it will abide by Taiwan’s wider sanctions on exports to Russia.