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Sustainability qua maxim of Russia’s electronics industry

Journal: RUDN Journal of Economics (Vol.30, No. 3)

Publication Date:

Authors : ; ;

Page : 371-382

Keywords : sustainable development; electronics industry; high-tech; state regulation; digital economy; fabless company; integrated circuit; import substitution; localization of production; production chain;

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Abstract

Electronics industry in Russia is an example of how inefficient old approaches to production can be. In XXI century, most companies have abandoned integrated device manufacturing, thus separating design and production. The main goal of this article is to analyze prospects for development of electronics in Russia with Government strategy being a huge supporting factor. Worldwide deficit of semiconductors, worsened by COVID-19, together with export sanctions imposed upon this country put a strain on both national fabless companies and IDMs, depriving them from future growth and undermining their stability. The authors employ induction, deduction, analysis, synthesis, analogy, and description, basing their work on scientific papers of the Russian and world economists as well as tech specialists. Government strategy and increased financial support may generate positive impact and assist existing foundries. However, the cherished goal of reducing dependency on market leaders (which is coveted by many nations) cannot be achieved as most producers stand in a long line before they can purchase equipment for their foundries. Therefore, the best-case scenario implies second-hand lithography systems from manufacturers wishing to upgrade. This is sufficient for sustainable development of microcontrollers but hinders high-tech aspirations of fabless companies in Russia. At the same time this issue is not limited to Russia alone - many countries have realized the need for production localization and changed their focus from either self-reliance or import substitution to partnership with leading foundries.

Last modified: 2022-10-04 04:54:13