© jakub krechowicz Components | March 22, 2013

Requirements of the microelectronics market in Russia

Microelectronics is one of the most important sectors of the economy and industry, and its development is essential to support country competitiveness at the macroeconomic level.
In recent years, Russia has paid special attention to the development of microelectronics from both the public and private sectors. The government and private companies have established extensive support programmes and proclaimed ambitious goals to support the industry. However, the opportunities and instruments that should drive the changes are not so obvious.

“Microelectronics companies require significant upfront investments toward the development of technologies and commercialisation of new products. This makes government support crucial in the initial stages of business development in order to reduce a part of planned investments,” notes Mr. Shukla. “Developed infrastructure is also vital for the sector’s growth, as it can help reduce capital investments and attract new investors.”

Frost & Sullivan analysis shows that governments of the countries leading in microelectronics implement ambitious long-term comprehensive programmes to support the industry. These programmes include tax exemptions preferences, intellectual property protection, product modernisation, and educational programs. Additionally, they help with product promotion on the local market. For example, in 2012, the Russian government approved the state program for domestic electronics industry development by 2025. This is expected to significantly fuel market growth.

"The global electronics industry is almost at the end of a three-year downturn. Considering the cyclic economy processes for this industry, where a full cycle in about five to eight years, we can expect the two upcoming years to be the most favourable for the recovering of the microelectronics industry in Russia”, says Mr.Shukla.


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