Texas Instruments, Analog Devices Have Alleged Connections To Russia: Are These Firms Shipping Chips Despite Ban?

U.S. semiconductor exports to Russian military-linked entities reportedly persist in 2023 despite export restrictions aimed at slashing them off. 

Texas Instruments TXN and Analog Devices ADI are major chip suppliers linked to the issue, according to a news report by Bloomberg.

Semiconductor shipments surged in the first half 2023, transited via Hong Kong to Russia, revealed customs data from C4ADS, the report read. These shipments to Russia undermined efforts to restrict technology from reaching Putin's military post-Ukraine invasion, it added.

The companies said they didn't trade the chips directly to the Hong Kong entities, and both ceased doing business with Russia in 2022. 

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Still, the companies' semiconductors have allegedly continued to flow into the country, showing the challenges of keeping U.S. technology out of Russia's hands, according to the report.

Over 17,000 Texas Instruments chips valued at $25 million were delivered to 200-plus Russian businesses, including two recently sanctioned by the U.S., the Bloomberg report added. 

The chips destined for Russian entities were processed by two Hong Kong firms, previously sanctioned for supplying chips to Russian military-linked companies, as Bloomberg's data indicated.

NPP Itelma, a vehicle electronics manufacturer, topped the list of Russian recipients of Texas Instruments's chips, acquiring $3 million worth. 

The company was added to the U.S. Treasury's sanctions list in September. Another company, VMK,  received $2.3 million worth of Texas Instruments chips and faced sanctions the same month for supplying electronic warfare systems to the Russian military.

"TI strongly opposes our chips' use in Russian military equipment and the illicit diversion of our products to Russia," the company said in an emailed statement to Bloomberg. "Any shipments of TI products into Russia are illicit and unauthorized."

ADI, TXN Price Action: Analog Devices shares are trading higher by 2.09% to $196.22, while Texas Instruments shares are rising by 1.35% to $167.38 on the last check Friday.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photo: Courtesy Texas Instruments