Russia to spend $2.5 billion on domestic chipmaking tool tech

Russia has reportedly allocated more than 240 billion rubles (around USD 2.5 billion) to support an ambitious program to replace foreign chipmaking equipment by 2030.

The initiative includes launching 110 R&D projects to reduce dependence on imported wafer fab tools and make chips on a 28nm-class process technology, according to Tom’s Hardware, quoting a report by CNews. 

Russian chipmakers such as Angstrem and Mikron can produce chips on nodes such as 65nm and 90nm. But of the 400 tools used in Russia for chips, only 12% can be manufactured locally. 

Hard-hitting sanctions slapped on Russia after it invaded Ukraine have driven up the cost of crucial equipment by 40% to 50% since it has to be often smuggled to the country, the report by Tom’s Hardware says. 

To keep costs under check and reduce dependence on foreign tools, Russia’s Ministry of Industry and Trade and the government-controlled company MIET have started a scheme to develop domestic alternatives for around 70% of the equipment and raw materials used for microelectronics production, the report says.

However, the details are still vague. 

Still, from what we know, by the end of 2026, Russia’s aim is to develop lithography equipment for 350nm and 130nm process technologies and electron-beam lithography equipment for 150nm production nodes, and produce silicon ingots that can be then cut into wafers, the report says.

By 2030, the aim is to domestically produce lithography systems that can process wafers with 65nm or 90nm process technologies.  

A report by the American Enterprise Institute (AEI) published in April noted that while Russia’s chipmaking industry was still functioning, it was “small” and “technologically backward.” 

In June, US lawmakers introduced a bill to bar US-based companies that have received CHIPS and Science Act funding from buying chipmaking equipment from companies owned or controlled by China, Russia, North Korea and Iran, datacenterdynamics.com reports.

In the first half of 2023, shipments of chips from China accounted for 88% of the chips acquired by Russia, the AEI report said.