In a recent government subcommittee hearing, leaders from major semiconductor companies addressed the critical issue of preventing the diversion of U.S. technology to adversarial nations, particularly in light of Russia's ongoing conflict in Ukraine. Executives from Analog Devices Inc. (ADI), Advanced Micro Devices Inc. (AMD), and Intel Corporation provided testimony on their compliance efforts and the challenges they face in ensuring their products do not contribute to military operations against Ukraine.

Michelle Stout, Vice President of Global Trade Compliance at ADI, emphasized the company's commitment to ethical practices, stating that they have ceased all transactions with Russia since the invasion. Stout highlighted ADI's proactive measures, including the establishment of a gray market mitigation team and the denial of sales to approximately 5,000 potential customers deemed suspicious. She noted that while complete prevention of product diversion is nearly impossible due to the global nature of chip markets, ADI is dedicated to enhancing compliance programs and collaborating with government agencies to combat illicit activities.

Tiffany Scurry, Chief Compliance Officer at AMD, echoed these sentiments, detailing the company's rigorous compliance protocols designed to prevent their products from reaching military end users in Russia. AMD has also halted all sales to Russia and Belarus and is implementing additional measures, such as an internal audit of export control processes planned for 2025. Scurry acknowledged the complexities of the issue, particularly regarding components that were already in circulation prior to the conflict.

Jeff Rittner, Chief Trade Officer at Intel, reinforced the company's commitment to ethical operations and compliance with export laws. He announced Intel's significant investment of $100 billion over five years to bolster semiconductor manufacturing in the U.S., which he described as vital for national security. Rittner condemned Russia's actions in Ukraine and reiterated Intel's dedication to preventing the misuse of its technology.

The testimonies highlighted a unified stance among these industry leaders against the diversion of U.S. technology for military purposes, with a strong emphasis on compliance, ethical responsibility, and collaboration with government entities. The subcommittee's focus on this issue underscores the critical role that semiconductor companies play in national security and the ongoing efforts to mitigate risks associated with global trade in technology.