Ericsson Says No Hardware Exported to Russia, Only Software Support

Ericsson suspended its business in Russia in April. Reuters
Ericsson suspended its business in Russia in April. Reuters
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Ericsson Says No Hardware Exported to Russia, Only Software Support

Ericsson suspended its business in Russia in April. Reuters
Ericsson suspended its business in Russia in April. Reuters

Ericsson said on Friday it is only providing software and technical support to Russian clients and has not sold any telecommunications equipment to mobile operators there since the Ukraine war started, after Swedish media reported the company had continued its exports.

Shares of the company fell 4.6% in morning trading.

Ericsson suspended its business in Russia in April and said in August that it would exit the country in the coming months.

It recorded a charge of 900 million Swedish crowns ($81 million) and made 400 employees redundant in the country as it winds down operations.

"Compliant with the sanctions we provide the software and technical assistance for those products that we have shipped prior to the invasion making it possible to withdraw while fulfilling contractual obligations," Reuters quoted a spokesman as saying.

"When the sanctions were announced we stopped shipments to customers in Russia," he said.

Rival Nokia, which has also announced plans to exit Russia before the end of the year, had said it does limited maintenance of critical networks to fulfill its contractual and humanitarian obligations.

Sveriges Radio Ekot reported that Ericsson had applied for 12 permits for exemptions from sanctions from Sweden's Inspectorate of Strategic Products and was granted seven.

The sanctions list by the Swedish authority include software and technology linked to telecommunications. It did not immediately respond to requests for comment.

Ericsson said the permits were for software and technical assistance.

"Even though mobile telephony is for civil use an export license is required mainly because of the advanced encryption technology that is embedded in our products, and this is to applicable for all countries," he said.

"Ericsson's products are designed for civil use, not military."



Musk Says Tesla, Samsung Electronics Sign $16.5 Billion Chip Supply Deal 

The Tesla logo is seen at the company's stand during the World Artificial Intelligence Conference (WAIC) at the Shanghai World Expo and Convention Center in Shanghai on July 28, 2025. (AFP) 
The Tesla logo is seen at the company's stand during the World Artificial Intelligence Conference (WAIC) at the Shanghai World Expo and Convention Center in Shanghai on July 28, 2025. (AFP) 
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Musk Says Tesla, Samsung Electronics Sign $16.5 Billion Chip Supply Deal 

The Tesla logo is seen at the company's stand during the World Artificial Intelligence Conference (WAIC) at the Shanghai World Expo and Convention Center in Shanghai on July 28, 2025. (AFP) 
The Tesla logo is seen at the company's stand during the World Artificial Intelligence Conference (WAIC) at the Shanghai World Expo and Convention Center in Shanghai on July 28, 2025. (AFP) 

Tesla CEO Elon Musk said the US automaker had signed a $16.5 billion deal to source chips from Samsung Electronics, a move expected to bolster the South Korean tech giant's loss-making contract manufacturing business.

Samsung shares rose more than 4% after the news.

"Samsung's giant new Texas fab will be dedicated to making Tesla's next-generation AI6 chip. The strategic importance of this is hard to overstate," Musk said in a post on X on Monday.

If Musk was referring to Samsung's upcoming Taylor, Texas, plant, the deal could revive the project that has faced delays amid Samsung's struggles to retain and win major customers.

"Samsung agreed to allow Tesla to assist in maximizing manufacturing efficiency. This is a critical point, as I will walk the line personally to accelerate the pace of progress. And the fab is conveniently located not far from my house," Musk said on his social media platform.

Samsung had earlier announced the $16.5 billion chip supply deal without naming the client, saying the customer had requested confidentiality about the details of the deal, which will run through the end of 2033.

Three sources briefed about the matter told Reuters that Tesla was the customer for the deal.

The deal comes as Samsung faces mounting pressure in the race to produce artificial intelligence chips, where it trails rivals such as TSMC and SK Hynix. This lag has weighed heavily on its profits and share price.

Samsung, the world's top memory chip maker, also makes logic chips designed by customers through its foundry business.

Pak Yuak, an analyst at Kiwoom Securities, said the latest deal would help reduce losses at Samsung's foundry business, which he estimated exceeded 5 trillion won ($3.63 billion) in the first half of the year.

Analysts say Samsung has struggled with the defection of key clients to TSMC for advanced chips. TSMC counts Apple, Nvidia and Qualcomm among its customers.

The Samsung-Tesla deal may also be significant for South Korea, which is seeking US partnerships in chips and shipbuilding amid last-ditch efforts to reach a trade deal to eliminate or reduce potential 25% US tariffs.

Samsung is grappling to boost production yields of its latest 2-nanometer technology, but the order is unlikely to involve the cutting-edge tech, said Lee Min-hee, an analyst at BNK Investment & Securities.

Samsung has been losing market share to TSMC in contract manufacturing, underscoring technological challenges the firm faces in mastering advanced chip manufacturing to attract clients like Apple and Nvidia, analysts said.