The country intends to invest heavily in local industry to try to offset its growing global isolation.
Target of several economic sanctions since the beginning of the war against Ukraine, Russia is planning to revive its chip production and development industry. However, while foundries like TSMC are already gearing up to produce 2nm lithographs, the local government’s plans include manufacturing 28 nanometer models up to the year 2030.
According to CNews (via Tom’s Hardware), the Russian government intends to invest the equivalent of US$ 38.42 billion to date as a way to develop its local semiconductor industry. The money will be invested in creating its own manufacturing processes, developing local talent and marketing the solutions offered by the country.
Of this value, at least US$5 billion must be invested in new manufacturing plants and in upgrading the factories that already operate there. Initial plans involve enable the production of 90 nanometer chips by the end of 2022while the mass production of 28 nanometer chips is expected only for 2030 — something TSMC started doing in 2011.
Russia plans reverse engineering initiative
An important part of Russia’s plans to develop its foreign industry is the establishment of a new reverse engineering initiative. The intention is to use “external solutions” as a basis for the creation of products manufactured in the national territory – the government’s objective is that all digital items that reach consumers are produced in-house by the end of 2024.
In this case, China must prove to be an important partner, providing access to consumer goods that cannot be manufactured in the country. The Russian government’s decision comes as a reaction to the economic sanctions it has sufferedas well as the decision of several companies — including names like Intel, OMG, Microsoft and TSMC — to terminate its activities in the territory.
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While Russian companies have been successful in creating technology software and services, the country’s semiconductor industry never really took off. It remains to be seen whether the efforts of the local government will be able to offset the increasing isolation that the country is having in relation to the global chip market.
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