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Russia Delays Launch of Yekaterinburg Microchip Plant to 2027

66.RU

The launch of a microchip manufacturing plant in the Ural Mountains city of Yekaterinburg has been postponed until the end of 2027, a year later than originally planned, the head of the Sverdlovsk Region Development Corporation said.

The Karat factory had previously been scheduled to begin operations by the end of 2026 and was billed as capable of meeting all of Russia’s domestic demand for analog microchips.

Microchips are used in missiles, satellites, lasers, 5G communications systems and autonomous vehicles.

Andrei Misyura, CEO of the development corporation, said the delay was caused by the lack of readiness at the Detal design bureau, a key partner in the project.

Construction of the plant, which is expected to require investments of 12.6 billion rubles ($165 million), has not yet begun.

The project currently consists only of a land plot with utility lines in place.

Misyura said the future factory’s products would be “world-class,” arguing that Russia lags behind global leaders in digital chips but remains competitive in analog technologies.

Russian-made digital chips are currently up to 100 times larger than cutting-edge global equivalents, he said, while analog chips are produced at a comparable level.

The development corporation plans to announce a tender in late January to select a contractor to design the facility and begin construction.

The plant will occupy about 17,000 square meters within the Kosmos technology park and is expected to employ around 80 people.

It is designed to support a full production cycle, including crystal growth and slicing, testing and chip packaging.

Karat is also expected to operate as a contract manufacturer, allowing companies to submit their own chip designs for production at the facility.

The corporation expects the plant to recoup its investment within three years of becoming operational.

Read this story in Russian at The Moscow Times' Russian service.

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