Intel and AMD are accused of failing to prevent their chips from being used in Russian missile systems
Shares of Intel and Advanced Micro Devices have come under heightened scrutiny because of a series of class action lawsuits filed against them by citizens of Ukraine affected by the war against Russia in a Texas state court.
According to a Bloomberg report today, the lawsuits against both Intel Corp., Advanced Micro Devices Inc., and Texas Instruments Inc. blame them for failing to keep their technology out of Russian-made weapons that have been used in the war against Ukraine.
Both companies – along with a company owned by Warren Buffett’s Berkshire Hathaway Inc. – reportedly looked the other way deliberately, even as third parties resold restricted chips to Russia to power drones and missiles in violation of US sanctions, according to one of the five suits, filed Wednesday in state court in Texas.
Serious allegations against Intel, AMD
The lawsuits cite five attacks that took place between 2023 and 2025 and claimed dozens of lives. These attacks allegedly involved Iranian-made drones with components associated with Intel and AMD, as well as Russian-made KH-101 cruise missiles and Iskander ballistic missiles, all weapons that utilize the resold chips.
In the past, both companies claimed they fully complied with sanctions requirements and ceased business in Russia when the war broke out, with stringent policies put in place to monitor compliance.
In congressional testimony last year, Shannon Thompson, the assistant general counsel at Texas Instruments, said the company “strongly opposes the use of our chips in Russian military equipment” and any such shipments “are illicit and unauthorized.”
Despite such statements, it has become clear that long-standing sanctions and export controls have not been able to keep chips from AMD, Intel, Texas Instruments, and others out of the hands of Russia’s military companies, hence the lawsuits which were filed in Dallas by Mikal Watts, a veteran US mass-tort lawyer, on behalf of Ukrainian citizens.
The US government is also reportedly aware that these chips are still getting into Russian hands and has repeatedly warned chipmakers that they need to do more to staunch this flow of chips. Last year, Democratic Senator Richard Blumenthal accused companies of “objectively and consciously failing to prevent Russia from benefiting from the use of their technology.”
Wednesday’s suits have also identified Mansfield, Texas-based Mouser Electronics, a company Berkshire acquired in 2007 when it bought Mouser’s parent company TTI Inc., as a pain point in the whole issue.
According to reports, the business is focused on selling and distributing semiconductor components and has been accused of facilitating the transfer of chips made by Intel, Texas Instruments, and others to shell companies controlled by Russian proxies.
The cases were filed in Texas because the chip companies and Mouser are either based there or have substantial operations in the state. There’s also the fact that the war made leveling the accusations in the Ukrainian court system impossible.
Despite the allegations, stocks of both Intel and AMD have shown resilience and a limited reaction to the news.
Intel executives stay in the news
The lawsuits against AMD and Intel are coming not long after the episode between Taiwanese authorities and one of Intel’s newest executives, Wei-Jen Lo.
The officials were reportedly investigating whether Lo, who was formerly with TSMC, may have stolen sensitive technology related to advanced semiconductor processes.
During the raid, prosecutors seized computers and other materials, and a court order froze some of Lo’s assets, including real estate, as part of the inquiry. TSMC has since launched legal action, accusing Lo of violating non-compete agreements and trade secrets regulations before his exit from the company.
Lo joined Intel as vice president of research and development after retiring from Taiwan Semiconductor in July, where he held a senior role in corporate strategy and advanced node technology development.
Intel CEO Lip-Bu Tan has rejected the allegations.
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