Russia won't be able to ditch critical Western technology any time soon, a recently published government document suggests.
Officials are asking that the use of Western microchips be phased out by 2035, Russian daily newspaper Kommersant reported on Wednesday, citing a government document published on September 9.
Russia has relied on Western microchips to power items such as laptops and smartphones, as well as a wide range of military equipment, including tanks, attack helicopters and targeting systems. But sanctions imposed on the country following President Vladimir Putin's full-scale invasion of Ukraine have meant the Kremlin has faced obstacles in procuring foreign-made chips and is now attempting to ramp up domestic production.
But a transition to rely mostly on microchips produced on Russian soil is unlikely to happen any time soon. According to Kommersant, it would cost at least 400-500 billion rubles ($4-5 billion) to expand the production of microchips in the country at a volume that will compensate for the industry's current shortage.
The publication noted in November 2022 that industrial demand, according to estimates, is more than three times higher than domestic production.
According to Osint For Ukraine, Russian companies Mikron and Angstrem are the only major firms in the country to produce chips domestically, and "both have faced significant setbacks due to a military focus on chip production."
Newsweek reached out to Russia's Foreign Ministry via email for comment.
The government documents state that Russian developers should stop using foreign chips in the development and operation of military equipment, as well as when manufacturing products for critical infrastructure.
Russia's Ministry of Industry and Trade told the newspaper that the government is now working toward the "predominant use" of "domestic trusted solutions in terms of radio-electronic products."
In the first half of the year, Russia imported foreign-made microchips worth more than $502 million despite Western sanctions, independent news outlet Verstka reported on July 31, citing classified customs data from Russian customs.
And citing analysis from Moscow-based strategic consulting company Yakov & Partners, Kommersant reported that should Russia succeed in purchasing used equipment from manufacturers from Southeast Asian countries, the country would only meet the demand for critical products in 2030.
A source told the newspaper that the only "Russian chip" that should be expected in the near future would be "produced and packaged at a factory in China."
"But it's not a fact that this chip can be called Russian," the source said.
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About the writer
Isabel van Brugen is a Newsweek Reporter based in Kuala Lumpur. Her focus is reporting on the Russia-Ukraine war. Isabel ... Read more
