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.
I agree with jg_ that Russia probably still needs raw materials and imported components to create their chips so they should be careful as to who they ban. However, I wonder if it is not a bad idea for them to be "green" by serving their local customers first since they know best how to serve them. Then, once they see that they do need to have free trade to grow and enjoy the scalable monetary benefits, they will by necessity have to lift their ban on imports.
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.
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.
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.
Well, the implication that protectionism ultimately leads to instability, economic donwturns and even wars at times (something corroborated by history by the way) does not mean in any way or shape that free market economics is a panacea. In other words, the fact that we had a financial crash during a free trade era does not mean that the problem is with free market economics itself. The causes of the financial crash, as we all know now, is crazy system which allowed people to take huge risks with other people's money, reaping most of the rewards and taking very little personal risks. Actually, if it were not for today's freer and more integrated world markets, we would have seen the abyss in 2008/9!
PS. I worry that people who had protectionist tendancies all their lives will now use the current financial crisis to attack free market economics. That is not the problem in my money.
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.
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