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Sberbank seeks Chinese chips amid U.S. sanctions, signaling Sino-Russian trade tie-up

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Key points

  • Sberbank seeks Huawei's Ascend 950 due to Western sanctions.
  • Chinese chip demand by Russia grows amid tech restrictions.
  • Russia's firms are increasingly relying on Chinese technology.

Sberbank's Chip Pursuit

Sberbank, Russia's largest bank, plans to use Huawei's Ascend 950 chips for its GigaChat AI model. This move reflects ongoing challenges in acquiring advanced hardware due to U.S. sanctions that hinder access to Western technology.

Chinese Technology Demand

Chinese-made processors are becoming a vital resource for Russia as Western countries impose restrictions. Notably, ByteDance, Alibaba, and Tencent have significant orders for the Ascend 950 chips, making it difficult for Sberbank to secure its technological needs amidst high competition.

Strategic Shifts in Chip Production

With sanctions pushing Russia toward Chinese technology, there is a notable shift in the supply chain dynamics. Russian firms like Tramplin Electronics and Element are already pivoting to Chinese designs and collaborations, further solidifying the Sino-Russian relationship in tech and manufacturing.

Economic Constraints Drive Alliances

Analysts suggest that Russia may struggle to build its domestic technological capacity without integrating Chinese solutions, which are more economically viable given the current sanctions landscape. This could lead to a robust parallel supply chain centered on Chinese chip production.

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Reporting from

Sberbank aims to run its GigaChat AI on Huawei-made chips due to U.S. export controls limiting access to Western technology. This move underscores a growing reliance on Chinese technology, facilitating a Sino-Russian chip trade alliance as both nations seek alternatives to U.S. products.