Russian chipmaker calls for import ban

8/26/2010 6:25 AM EDT

This doesn't really sound to harm any integrated circuit manufacturing companies outside of the Russia. Many countries are operating in such protective mode when it comes to government projects. If the IC manufacturing could really help the Russian economy to improve then the government should also identify the other benefits that it could get out of this. This proposal will be easily approved since the ban would be only on the IC's those used in the passport and ticketing applications purely the products bought by government.

8/26/2010 11:23 AM EDT

I wonder if Russian companies have enough wide product portfolio to fulfill appetite of Russian OEMs, ODMs, EMS and other government backed companies. If Russia would like to ban import (which means back to communist era in my understanding) parallelly should create such attractive atmosphere
for further JVs, production facilities or R&D offices. However else than assigning ex CEO of intel to create silicon valley Russia, no progress on going until now.

8/26/2010 5:12 PM EDT

If I were Putin I would be concern that such a move would just backfire. Russia's IC industry is just too small to provide all needed pieces for equipment makers. Protection measures like this usually don't pay off in a longer term...Kris

8/27/2010 12:39 AM EDT

Think Russia is in protective mode if they approve this proposal and Finally will impact its own economy...Sudarshan

8/27/2010 12:42 PM EDT

Russians are lagging and may be feeling left alone in this fast changing world of modern electronics / semiconductor technology sector. We should try to make them part of this main stream society. Is not it duty of our EE community in general and immigrants of Russian origin in particular to take active part in their beloved origin? They can work there, invest money and technology, take part in advisory board to politician and educate them about benefits of not banning import of semiconductor devices? As such Russians are as innovative and hardworking as rest of us and I wish see them contributing and effectively competing in the modern global village for EE sector

8/27/2010 5:26 PM EDT

The key words here are "the proposal would give priority to Russian made chips", which is short of the earlier claimed 'ban' - it all seems inept, will involve a lot of red tape, and they still cannot complete anything without imported components.

8/27/2010 9:07 PM EDT

An own goal if it is approved. History has taught us that such approaches will always backfire, and I do not think Russia is in a position to shield itself from the consequences...

8/28/2010 2:12 AM EDT

They taught me in business school that open economic borders take best advantage of national competitive advantages, and allow for more efficient production, cheaper goods, and supreme happiness for all. The penalty for not allowing free trade, the professors warned us, was a horrible, world-wide depression! So here we are in (what many might consider to be the beginning of) a horrible, world-wide depression, even though our economic borders are probably more open than they've been since caveman days. Why is that? Maybe part of the answer is hidden in this observation: When I look back at what our professors taught us, I realize that almost no students dared to openly evaluate the consequences of unfettered national competitive advantage outside of the realm of economic gain. Maybe Russia is starting to figure it out.

8/29/2010 3:22 PM EDT

Yeah, I know. Look at China's reluctance to let their currency float, to protect their export markets. That is a form of protectionism. Without it, their currency would rise in value and exports from China would tend to get much more expensive. But, the currency's value is kept pegged within certain limits. I wonder how that is working out for them?

8/29/2010 6:52 PM EDT

This is all the irony why things are tough in the US. They want to lead the world while the world is getting smarter. Just imagine a US company doing the same. It is the new world. If you cannot win by innovation, you win through State. GM and Chrysler won through State. It is the new world.

8/30/2010 4:58 AM EDT

China has achieved a similar end-goal of creating an entry-barrier in an "evolved" way by creating their own DTV standard! This takes a lot more effort and investments than a government diktat - in some sense it is earned protectionism. Chinese companies do have an early mover advantage but outside companies can catch-up. This approach may not be practical in all situations but it can work if there are no unfair/hidden obstacles for outside companies.

8/30/2010 11:57 AM EDT

Absolutely go ahead and close your market to imported chips. Russia is a small market for western chips, so there will be little damage to foreign firms. Ultimately such a move almost guarantees that Russia will never compete on the world market. So please, go ahead. Shoot yourselves in the foot and then blame the West.

8/31/2010 10:05 AM EDT

This is a good decision for developing russian semiconductor industry, but at the same time it will not be good for creating competition and competitive development.
As all other comments says that russia is not so big semiconductor user so the world semicon market will not be much affected due to this decision.