The Russian government has approved a new large-scale program to develop the domestic microelectronics industry, with the creation of a state-owned “United Microelectronics Company” as its central element. Around 1 trillion rubles are planned to be allocated for the project, which is equivalent to approximately $12–13 billion depending on the exchange rate.

Of this amount, about 750 billion rubles will come directly from the federal budget, while another 250 billion rubles will be provided through state-owned banks. The project is presented by the authorities as a step toward so-called “technological sovereignty”, but in practice it represents a response to Russia’s loss of access to Western technologies and equipment following the imposition of sanctions.

According to official data, the new corporation is expected to establish production of microchips using 28-nanometer process technology and above. By global standards, this level is 10–15 years behind: leading manufacturers such as TSMC and Samsung have long moved on to 3–5 nm technologies and are preparing for next-generation chips.

Experts note that even with full funding, Russia remains cut off from critical equipment, most notably advanced lithography machines, whose supply is controlled by Western countries. This seriously calls into question the possibility of any genuine technological breakthrough.

The scale of the investment makes it one of the largest initiatives in the history of Russia’s technology policy. However, previous import-substitution programs in electronics and IT have repeatedly been marked by cost overruns, missed deadlines, and a lack of competitive results.

Critics of the initiative point out that the project is being built as a large state-controlled structure, which increases the risks of inefficient management, corruption, and the formal absorption of budget funds without meaningful access to global markets.

Another major challenge is the outflow of specialists. In recent years, a significant number of engineers, developers, and scientists have left the country. Addressing the resulting talent gap requires not only funding, but also an open scientific environment, international cooperation, and access to cutting-edge research — conditions Russia currently lacks.

The launch of this microelectronics mega-project fits into the Kremlin’s broader strategy of demonstrating “self-sufficiency” amid international isolation. According to analysts, however, it is more about preserving a minimally functional technological base than building a truly competitive industry.

In effect, Russia is investing billions of dollars in catch-up development while lacking access to advanced markets, key technologies, and global supply chains.

The announced one trillion rubles is therefore not an investment in the future, but the high price of isolation. Even in the event of partial success, experts believe the project is unlikely to bring Russia closer to the world’s microelectronics leaders, with its real impact limited to the domestic market and defense-related orders.

#RUSSIA

23.01.2026 07:26