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Moscow to Drive the Microelectronics Industry in Russia Finds Frost & Sullivan - Frost & Sullivan and City Government discussed scenarios of microelectronics industry development during an expert roundtable
Moscow to Drive the Microelectronics Industry in Russia Finds Frost & Sullivan

 

NewswireToday - /newswire/ - Moscow, Russia, 2013/11/21 - Frost & Sullivan and City Government discussed scenarios of microelectronics industry development during an expert roundtable.

   
 
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Microelectronics is one of the key technologies driving the development of major industries globally. In Russia the microelectronics component market reached $2.5 billion in 2012, equaling 0.5 percent of the global market. Overall in the Russian market, there are several major players and many small and medium enterprises. Import plays a dominant role both in public and military segments.

Frost & Sullivan in co-operation with the Moscow Government organised an expert roundtable entitled "Scenarios of microelectronic industry development in Moscow". The event was an open debate between leading industry experts and government officials who discussed the future of the microelectronics market in Russia, and Moscow in particular.

"The time for a professional dialogue among leading foreign and Russian industry players and public authorities has come. Frost & Sullivan experts are ready to take part in the discussion to share our knowledge on best practices of government support and business strategies in this particular field," said Frost & Sullivan Global President & Managing Partner, Mr. Aroop Zutshi, who also moderated the debate.

Historically, the Russian microelectronics market was under government protection. However 80 percent of components are currently imported. Aerospace and defence industry, traditionally the biggest end user of microelectronics components, accounted for over 40 percent of the market demands. According to Frost & Sullivan, the Russian microelectronics market is estimated to grow at CAGR of 8.4 percent from 2012 to 2025. The growth will be stimulated mainly by the development of key industries such as aerospace and defence, telecommunication equipment, security systems, lighting systems, and industrial automation.

"Strong partnership programmes between government and business need to be established in order to succeed on the Russian microelectronics market. Market participants should focus on investments in research & development (R&D) to develop cutting edge technology to improve yields, and on identifying preferable market niches. The main aim for the government would be to build up a strong demand for microelectronics components on the domestic market by developing special economic zones with beneficial economic arrangements," noted Mr. Zutshi.

Moscow and the whole region are a base for leading domestic semiconductor producers. Moreover, the Russian capital is the only city which has the entire value chain segments from design and development till production. "Moscow will continue to remain the main driver of the industry in Russia due to its high scientific potential, the presence of major market players and their co-operation," commented Frost & Sullivan Technical Insights Practice Director in Europe Ankit A. Shukla. "The city could become a benchmark for other regions in Russia. It is here that market participants will implement a new business approach and estimate the level of investments and risks related to it."

To receive the presentation from the roundtable "Scenarios of microelectronic industry development in Moscow" delivered by Frost & Sullivan's Technical Insight Practice Director, Europe, Ankit Shukla, please send an email to Julia Nikishkina, Corporate Communications, at julia.nikishkina[.]frost.com, with your full contact details.

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Moscow to Drive the Microelectronics Industry in Russia Finds Frost & Sullivan

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Frost & Sullivan | Microelectronics Industry
Publisher Contact: Julia Nikishkina - Frost.com 
+7(499) 213 0156 julia.nikishkina[.]frost.com
 
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