The world exports of semiconductors Exports to Russia have plummeted by 90% since the United States and its allies imposed export controls on Moscow over its invasion of Ukraine, US Commerce Secretary Gina Raimondo said on Wednesday.
Speaking at an annual Commerce Department conference, Raimondo also said that the controls imposed on the aerospace industry Russian forces are undermining their ability to generate revenue and support military aviation.
“Russia may be forced to ground half to two-thirds of its commercial aircraft over the next four years to cannibalize them for spare parts,” he added.
The remarks came a day after the administration of President Joe Biden placed five Chinese companies on a trade blacklist for their alleged support for military industrial base and defense of Russia.
Washington has worked with its allies to punish Russian President Vladimir Putin for the invasion, which Moscow calls a “special operation,” by sanctioning a number of Russian companies and oligarchs and adding others to a trade blacklist.
Although US officials have previously said that China was generally complying with the restrictions, Washington has promised to closely monitor compliance and be rigorous about enforcing the rules.
On Wednesday, Raimondo also doubled down on his threats to “shut down” China’s top chipmaker, SMICif it is discovered that it supplies chips to Russia.
“What if SMIC or other China-based semiconductor companies are found to be supplying chips to Russia?” he asked. “We will shut them down and we can do it, because almost all the chips in the world and in China are made with American equipment and programs and I intend to honor that commitment if necessary.”