Trade sanctions on Russia are now being extended to technology restrictions by the United Kingdom government due to the Ukraine Conflict. A total of 65 Russian entities are now put on a list of restrictions that prevent them from using technology from the UK. Two of them are Baikal Electronics and MCST (Moscow Center of SPARC Technologies) which is a Russian chip manufacturer.
Both companies can no longer use ARM-owned technology which is a UK-based company. Since the blockade was imposed on Russia, the two companies have increased production of locally designed chips to scrape the void left by Intel and AMD.
Chips produced even if not high -tech are needed for the survival of IT infrastructure in Russia. Baikal has a license to produce 16nm technology chips but with the restrictions imposed they will definitely continue production without permission. Other foundries in Russia are only capable of producing outdated 90nm chips.
The Russian government has announced an investment of 3.19 trillion rubles (~ RM209 billion) to increase the country's chip production capacity with the hope that 28nm chips can be produced by 2030.