The industry portal Telesputnik hosted a round table discussion at ExpoElectronica 2026 exhibition. The central theme of the debate focused on the prospects and challenges facing the Russian microelectronics market on its way to localization. Participants reached a consensus: the future of the Russian microelectronics industry depends not only on invested billions but also the sector requires government support, the establishment of long-term demand as a primary industry goal, and systematic engagement with students and radio enthusiasts.
The event featured the following participants:
• Pavel Kutsko, General Director of the Scientific Research Institute of Electronics (NIIET) and the Scientific Research Institute of Microelectronic Equipment Progress (NIIMA Progress) — both part of Element Group (MOEX: ELMT);
• Ekaterina Yuneva, General Director of MIPT Telecom (part of Element Group, MOEX: ELMT);
• Darya Pankova, Head of the RISC-V Alliance Energy program.
The Path to Localization: It’s All About Demand
Today, building a fully localized production chain for microelectronics and electronic components (ECB) is a challenge faced globally. As Pavel Kutsko, General Director of NIIET and NIIMA Progress, pointed out, the history of the industry shows that no nation has ever achieved this in isolation. One of the few exceptions was the Soviet Union, which maintained an independent microelectronics industry that occasionally met, and in some respects even surpassed, international standards.
While the goal of full localization has been set, Mr. Kutsko noted that the path to achieving it will be a long one. The industry faces significant hurdles regarding expertise, personnel, and components. However, in the expert’s view, the core issue is not so much technological as it is a matter of demand management.
“The question of whether we need to build our own foundries for full-cycle microelectronics production comes down to domestic demand. Do we actually need to build these factories? If we build and commission them, they must operate continuously. Without guaranteed demand, these facilities will eventually stand idle. Therefore, the right question — one currently being addressed by both the Government and the President — is how to generate demand for these products,” said Pavel Kutsko, General Director of NIIET and NIIMA Progress.
Government Decree No. 719 (dated 17 July 2015, “On Confirmation of Production of Russian Industrial Products”) is intended to partially address this demand-side challenge.
According to the head of NIIET and NIIMA Progress, the focus should shift from the ambitious but difficult-to-attain goal of full localization to a more realistic, partial approach. For instance, starting with semiconductor packaging. Mr. Kutsko gave as an example the structure of the global microelectronics industry, where dedicated facilities (OSATs) focus exclusively on assembly and packaging. This, he suggested, is exactly where Russia could begin its journey.
