A recently published government document suggests that Russia’s ambition to reduce its reliance on critical Western technology, specifically microchips, by 2035 faces substantial challenges. According to a report from Russian daily newspaper Kommersant, officials have outlined plans to phase out the use of Western microchips in various applications.
Russia has traditionally depended on Western microchips to power a wide range of products, including laptops, smartphones, and crucial military equipment like tanks, attack helicopters, and targeting systems. However, following sanctions imposed on Russia due to President Vladimir Putin’s invasion of Ukraine, procuring foreign-made chips has become increasingly difficult. Consequently, Russia is striving to boost domestic microchip production.
Transitioning primarily to domestically produced microchips, however, is a formidable task that won’t materialize in the near future. Kommersant reports that expanding microchip production in Russia to a level that compensates for the current industry shortages would require a substantial investment of at least 400-500 billion rubles ($4-5 billion).
As of November 2022, industrial demand for microchips in Russia is estimated to be more than three times higher than domestic production. Currently, Russian companies Mikron and Angstrem are the primary domestic chip producers, but both have faced significant setbacks due to a military focus on chip production, according to Osint For Ukraine.
The government document outlines that Russian developers should cease using foreign chips in military equipment development, operation, and critical infrastructure product manufacturing. Russia’s Ministry of Industry and Trade has stated its commitment to increasing the use of “domestic trusted solutions” in radio-electronic products.
Despite Western sanctions, Russia imported foreign-made microchips worth over $502 million in the first half of the year, according to classified customs data from Russian customs, reported by independent news outlet Verstka on July 31.
Analyzing the situation, Moscow-based strategic consulting company Yakov & Partners suggests that even if Russia manages to purchase used equipment from Southeast Asian manufacturers, it will only meet critical product demand by 2030, as reported by Kommersant.
A source quoted in the report indicates that the only “Russian chip” on the horizon may be “produced and packaged at a factory in China.” However, there are doubts about whether this chip can truly be called Russian.
As Russia grapples with the challenge of reducing its dependence on Western microchips, the global tech landscape will be closely watching the developments in this critical sector.