Market participants back microelectronics development potential in Russia

The microelectronics industry in Russia has been receiving quite a lot of attention recently with growing realization that intensive industry development is crucial to achieve import substitution and eventually compete in the international market. At the conference that took place recently in Zelenograd as part of SEMICON Russia 2013, which is devoted to the development of microelectronics in Russia, Practise Director of Frost & Sullivan’s Technical Insight division in Europe, Ankit Shukla, shared with the audience his vision for growth of the microelectronics industry in changing business conditions.

"A number of fundamental aspects need attention for the harmonious development of microelectronics," noted Mr. Shukla. "The foremost is government and the private sector support for new trends in the technology. The formation of a nuanced state policy oriented towards the interests of the industry and the business community will play a strong role in the development of the microelectronics market, both in Russia and across the world. In this regard, providing tax exemptions and institutional support for the industry is a necessity for its progress."

During the event, Frost & Sullivan and Semiconductor Equipment and Materials International (SEMI) presented the first results of the research entitled "The Russian Microelectronics Market" based on a survey of representatives from domestic and foreign companies operating in the Russian market. Results showed that for a three-year outlook, all respondents expect a positive growth trend for the market. In addition, 45 per cent of those surveyed believe that their turnover will outpace industry growth rates.

A majority – 64 per cent – of respondents expect the processors segment, including microcontrollers (MCUs) and microprocessor units (MPUs), to be among the most promising in the market. Other indicated areas of development included radiofrequency modules and components by 43 per cent, optoelectronics by 36 per cent, and microcircuitry and sensors by 29 per cent of respondents.

An effective support tool for the microelectronics industry is the creation of special economic zones and clusters as evidenced by the experience in Russia as well as Asian and European countries. Such economic zones already exist in Zelenograd and Skolkovo. Human resources can also be a compelling aspect as the educational level of Russian technical specialists has traditionally been highly valued in the world. Such potential will unquestionably help market growth but the problem of migration of highly qualified personnel to other countries is one that cannot be ignored. Thus, retaining professionals within the country and creating an attractive work environment for them should be a fundamental task to further market development.

"In order to excel in the microelectronics market we must develop partnership programs on several levels since a simple a technology-oriented approach will not be enough," advised Mr. Shukla. "Market participants must concentrate their efforts on diversification, development of new technologies, optimization of expenditure, and development of new market niches."

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