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Senate panel to question US semiconductor firms on Russian weapons

investing.com 05/09/2024 - 15:18 PM

Senate Hearing on Semiconductor Use in Russian Weapons

By David Shepardson

WASHINGTON (Reuters) – The U.S. Senate Permanent Subcommittee on Investigations announced a hearing regarding the use of American-made semiconductors in Russian weapons during the Ukraine war.

Senator Richard Blumenthal, the committee chair, revealed that the hearing will take place on Tuesday and will feature executives from four major companies: Analog Devices (NASDAQ:ADI), Advanced Micro Devices (NASDAQ:AMD), Intel (NASDAQ:INTC), and Texas Instruments (NASDAQ:TXN).

The committee noted that products from these companies have been found in recovered Russian weaponry. The hearing will examine the companies’ adherence to export controls aimed at preventing Russia from acquiring American technology.

Intel has refrained from commenting, while the other companies did not respond promptly to inquiries. They are sending vice presidents responsible for trade compliance to testify.

In February, Blumenthal stated that U.S. semiconductor producers need to do more to prevent their chips from being unlawfully utilized by the Russian military.

Reports indicate that U.S.-origin chips and other technologies continue appearing in various Russian military equipment, including drones, radios, missiles, and armored vehicles, despite strict U.S. export controls established following Russia’s invasion of Ukraine in 2022.

Preliminary data suggests significant increases in exports to nations that Russia may be using to bypass these controls, as per a Senate memo from February.

Intel has asserted that its contracts mandate compliance with regulations and that it actively monitors distributor issues. AMD expressed support for enhancing public and private collaborations to tackle illegal product diversion. Texas Instruments mentioned its extensive efforts to keep chips away from malicious actors, and Analog Devices emphasized their proactive measures against gray market risks.




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