The Prime Minister spoke at the forum’s plenary session, The Current State and Development Prospects of the Russian Microelectronics Industry, and toured the exhibition.
Mikhail Mishustin toured the exhibition of the Microelectronics 2024 Russian Forum. The stand of HighTech. Reporting is HighTech CEO Andrei Pankov
Mikhail Mishustin toured the exhibition of the Microelectronics 2024 Russian Forum. The stand of Micron, Element state corporation. Reporting is Micron CEO Gulnara Khasyanova
Mikhail Mishustin toured the exhibition of the Microelectronics 2024 Russian Forum. With Minister of Digital Development, Communications and Mass Media Maksut Shadayev, Minister of Industry and Trade Anton Alikhanov, and Minister of Science and Higher Education Valery Falkov
Mikhail Mishustin toured the exhibition of the Microelectronics 2024 Russian Forum. With First Deputy Prime Minister Denis Manturov
The Microelectronics Russian forum has been held annually since 2015 and has established itself as the main communication platform on a wide range of issues related to the strategy of scientific and technological development of the micro- and radioelectronic industry, the creation and application of an electronic component base and software and hardware systems, the implementation of strategic scientific, technical, industrial and innovative projects, the regulatory framework and standardisation, the creation of a digital economy and ensuring the security, and technological sovereignty of the country.
The forum is held with support of the Ministry of Industry and Trade and the Ministry Science and Higher Education. Over 3,000 specialists representing 850 companies and organisations take part in it. Scientists, officials, and representatives of industry and education will discuss key issues of the industry’s development. This year, the forum exhibition covers a total area of 1,700 sq m, with 145 exhibiting companies.
Mikhail Mishustin’s remarks at the plenary meeting:
Friends and colleagues,
I am glad to greet you all at the Microelectonics 2024 forum. This year it marks its first milestone anniversary – it receives its guests for the 10th time.
Over these years the forum has become a major and respected discussion platform gathering thousands of leading specialists in the industry. And of course, it is especially pleasant to see young people here in the hall, at the exhibition, who are among the speakers and visitors.
Here, scientists, business peoples and officials are looking for answers to the most pressing questions, exchanging opinions, ideas, and experience. They can join their efforts in promising projects, including in the projects intended to strengthen our country’s technological and industrial sovereignty as well as its security.
Such an opportunity is extremely important, because a scientific approach, intelligence and technical progress are the main driving forces of a modern state’s innovatory development and current economic transformations in all the world.
Ensuring technological sovereignty has become one of the key tasks set before us by the President as part of the national development goals. For this purpose, the Government, in close coordination with business, scientific and expert communities, the Academy of Sciences, and in cooperation with the State Council working group on industry supports the expansion of domestic competences in a wide range of areas, and of course, including in electronic engineering, in the production of the latest technological equipment and ultra-pure materials and components. Indeed, it is already impossible to imagine, without relevant products, many modern goods needed by business and people, improvement of the transport, financial area, health care, space development and proper condition and resiliency of the country’s critical infrastructure.
The importance of developing the industry was well understood way back in the Soviet Union. The country faced largely similar tasks in the 1960’s. And then it created an advanced research and production infrastructure that made it possible to develop and arrange the output of original microelectronic products.
In the first post-Soviet decades, we primarily addressed other no less topical issues. However, the situation started changing rapidly over the past few years. As instructed by the President, the Government expedited the development of this industry. We support research projects, including those in the field of photon and laser technological and optronic (optical fibre) systems. We implement projects in order to boost production of modern electronic devices. We prioritise efforts to train skilled personnel.
The regions are also involved in this because virtually the entire country develops and manufactures domestic electronic systems. Science and production clusters function around leading engineering universities, the relevant infrastructure of industry parks, experimental testing sites, technology transfer centres and engineering services centres is being established. We support small and medium-sized technological companies, as well as the most diverse associations.
The business community is extremely interested in this. In 2023, the country had over 5,000 commercial companies operating in the radio-electronic industry. Over 120 specialised research and development organisations also function in Russia.
It is very important that we expand competences and develop advanced national technologies more actively in conditions of greater external pressure and unlawful restrictions. Of course, a comprehensive approach is essential.
Consequently, we need to simultaneously invest in the electronic machine-building sector, production of super-pure materials and electronic components, and we must develop our own software.
The Government focuses on all these aspects. We stipulate multiple support measures, such as financing fundamental research projects, incentivising production and introducing new products.
For example, we stipulate low profit tax rates. Today, other participants and we discussed the significance of this industry-development incentive at the exhibition. Additionally, one should mention reduced insurance premiums. Last year alone, this option allowed radio-electronic organisations to save over 70 billion roubles.
At the nearest Government meeting, we will review a bill on extending this measure for another three years using the soft loans mechanism. Additionally, we are studying the issue of spreading this mechanism to enterprises of the electronic machine-building sector (this is highly important), including manufacturers of special materials and substances, used to manufacture microelectronics.
The government is also increasing financial support. If budget investments in the industry did not exceed 10 billion roubles in 2020, then by the end of the current year, they should exceed this figure by almost 15 times. In total, over 430 billion roubles have been allocated from the budget over four years.
Of course, these efforts yield results. Over the first six months, the production volume of electronic and optical products grew by 35 percent compared with the same period of 2023. If we look at individual areas, then the production of computers and their parts and accessories, for example, increased by 16 percent over the seven months of the year, communication, radio and television transmitting equipment, as well as television cameras grew by 40 percent; and radar, radio navigation and radio remote control equipment by almost 60 percent.
As a result of implementing the projects supported before, last year an entire range of Russian technological solutions was launched onto the market, including an autonomous hardware and software complex for 3D printing.
Businesses are also striving to expand their projects, which was demonstrated today. Over the first quarter of 2024, investments in fixed capital in the ICT sector increased by more than 150 percent.
Despite the current challenges, Russian electronics manufacturers are investing actively in research and development. They are launching new projects across the country.
Moreover, Russian plants do not only supply their products to state purchasers, but also to private enterprises and regular customers. Today, Russian laptops, monitors, tablets and other equipment are available in stores and in the display cases of marketplaces. Of course, not all of them have been created from scratch, but Russian technological share is already significant.
Overall, the industry is comprised of several hundred large companies. The thousands of people present at the forum today are a clear indication of the positive changes that have taken place in domestic microelectronics, the interest in them, and the determination to progress.
When four years ago we adopted the development strategy for the industry, few believed in such a boost. We have not just overcome the coronavirus-related restrictions and unprecedented sanctions as well. Although many ill-wishers predicted that we would go back to the Stone Age and that the production infrastructure would collapse, but even in such difficult conditions, we continue to move steadily towards achieving the national development goals approved by the head of state.
This general trend must be preserved. There is still a lot to be done. The current stage is transition. The industry that was in a systemic decline, lagging behind developed countries’ level for several decades, is turning into a truly innovative foundation for the country’s long-term scientific, technological, and economic progress.
In the coming years, we have to create a strong foundation for a technologically independent electronic industry in the country, including using our own innovations and forming all the necessary competences.
Leading scientific organisations are carrying out a wide range of research works with support of the president, Government, development institutions, and funds. We understand that this is a long way that will involve hundreds of teams. But we must take it, because in the end we will get original Russian solutions that will be introduced in production (no one understands this better than you, dear forum participants) and turned into goods and services. Then, new markets are to be formed on this foundation, which, I am sure, will positively influence the dynamics of our economy and people’s incomes in general.
The industry community and us have already begun implementing projects within two key state programmes: the development of the electronic and radio-electronic industry and the scientific and technological development of the Russian Federation. They include four federal projects. Two are aimed at supporting applied research, design and development of infrastructure, and production of electronic products. Another one is Development of Electronics Production Technologies, and the fourth is related to the training of personnel and scientific foundation.
Billions of roubles have been allocated to create production equipment, develop basic materials, as well as to establish specialised infrastructure and expand the range of products. All this will lay the foundation for stable long-term growth of the industry for decades to come.
Without doubt, the government will continue to support the implementation of investment and infrastructural projects in order to strengthen dynamic changes in this sphere, including the construction and creation of specialised technology parks in the regions.
In the next few years, an entire range of systemic tasks must be addressed.
The first one is, of course, overcoming the critical dependence on foreign technology. In order to do this, Russia must create its own powerful electronic engineering industry and master, in particular, the production of means to manufacture electronic devices for lithography, etching, and crystal growing processes.
It is also necessary to expand the range of manufactured measuring and auxiliary equipment, increase the production of special and high-purity gases for the production of electronic components, and ensure independence in terms of automated design systems and software for the architecture of the specialised component base.
It is planned to create test sites and labs to test complex solutions. Thus, we will be able to work on the characteristics of closed technological chains and then implement and scale them in our industry.
Russia has enormous scientific and production potential. I believe that, by uniting the efforts of scientists, developers, producers, and entrepreneurs, we will be able to achieve success in developing microelectronics and do everything to make Russia a global technological leader.
Colleagues, friends,
This year, the forum is held ahead of your new professional day: Electronics Industry Worker Day. Adding this date to the calendar is a sign of recognition of the work of scientists, engineers, and everyone who has survived and is developing domestic microelectronics in trying times, creating the foundation of the country’s digital infrastructure.
I would like to use this opportunity to congratulate you on this upcoming holiday and thank you for your contribution to the formation of the technological future of the country.
I am confident that many new interesting ideas and proposals will be made at the forum. My colleagues in the Government will study all relevant topics. I would like to wish you constructive work with all my heart, as well as productive dialogue in developing effective solutions for the benefit of our country, in order to achieve the intended goals and plans.
Thank you.