1000 Chips! Russia's 16nm Silicon has Arrived

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December 5, 2024

The recent news surrounding the Baikal processor in Russia marks an important moment in the country’s technological landscapeThe announcement by Vasily Shpak, the Deputy Minister of Industry, regarding the resumption of Baikal processor supplies is pivotal, especially as Russia has been grappling with significant technological setbacks since 2022 due to international sanctionsThese sanctions halted domestic production of processors and left many produced units stuck at the border, unable to reach their intended destinations.

On a recent visit to the Russian Electronic Forum, Shpak confirmed that a total of 1,000 Baikal-S server processors had successfully arrived, signaling a crucial step forward for the Russian microelectronics industryReports from CNews indicate that these processors were developed by Baikal Electronics, a company recognized as one of the key players in the Russian chip design sector

Despite the limited number of initial units, the arrival of these chips holds considerable importance, as stakeholders from various companies are already queuing up to get their shareWithin the electronic market, this moment feels like a breath of fresh air, revitalizing a sector that has faced severe pressure and uncertainty.

However, the journey to this point has not been without its challengesBack in the summer of 2022, Baikal Electronics found itself in a difficult position after severing ties with TSMC, a leading semiconductor foundryThe company had to cancel the intended release and sales of the Baikal-S CPUs, which is a direct consequence of the geopolitical tensions and the subsequent sanctions imposed on RussiaBy December of the same year, multiple batches of other processors, including the Baikal and Elbrus variants developed by the Moscow SPARC technology center, were reportedly caught in logistical limbo, as manufacturers abroad refused to ship the items back to Russia.

The Baikal-S processors, which utilize an Arm architecture, started development in October 2016, with production concluded by November 2019. These advanced processors are designed using a 16nm process technology, featuring 48 cores, base frequencies of 2.0GHz, and the potential to boost up to 2.5GHz

The designs also integrate a RISC-V architecture co-processor aimed at improving the security and management capabilities of the main processing unit.

With regards to capabilities, the associated server motherboard ET113-MB has been designed to support a six-fold 72bit memory interface, allowing up to 768GB of DDR4 memory, alongside multiple PCIe 4.0 slots for expandabilityIn benchmark tests, it claims impressive performance figures, positioning itself as a competitive alternative in the server market, historically dominated by brands like Intel and AMD.

The reported pricing for a single Baikal-S unit standing at around $3000 indicates the high-stakes nature of this marketThis figure is a reflection of Russia's need to not only catch up but also establish its own technology roots amid the global semiconductor supply chain fluctuations triggered by the ongoing geopolitical climate.

Looking back, Baikal Electronics initially received a handful of engineering chips from TSMC in October 2021, hoping to ramp up production significantly by the following year

However, the swift onset of sanctions painted a grim picture for their ambitions, constraining them to a mere fraction of what they had envisioned—production capabilities as modern as 65nm are currently all that Russia can muster.

As stated by various industry insiders, more than half of the chips manufactured currently turn out to be defective, attributed to a lack of appropriate calibrations of both machinery and the skill set of the workforce involved in assemblyThis has undoubtedly compounded the already challenging scenario, as the local industry grapples with how to meet an enormous domestic demand that stretches into the millions.

Despite these hurdles, the BAikal Electronics roadmap indicates a commitment to the sector, outlining their plans to produce at least 600,000 units a year by 2025. The optimism for success is embedded within the statement made by Dmitry Rakovich, the development director at Softlogic, which emphasizes that while the initial delivery of 1,000 units is crucial, the integration into existing technologies and innovation pipelines will take time—at least a year for manufacturers to adapt these solutions effectively into their production and testing processes.

Olga Kvashenkina, the CEO of SNDGLOBAL, echoed these sentiments of cautious optimism by noting that while the initial deliveries symbolized a much-needed return from a challenging hiatus, the reality remains that no Russian company is likely to supplant the established global players entrenched in the 16nm technology space anytime soon.

In summary, despite the relatively small size of this initial delivery, the implications extend far beyond mere numbers

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