Benefits for electronics manufacturers in Russia

Import substitution of computer equipment and microelectronics

Main article: Import substitution of computers and microelectronics

State Program for the Development of Electronic Component Base and Radio Electronics

Main article: State program for the development of electronic component base and radio electronics until 2025

Chronicle

2024

Manufacturers of radio electronics under the state defense order will be given benefits

In August 2024, it became known that manufacturers of electronic products fulfilling the state defense order will receive additional tax breaks. This decision was made by the Russian government within the framework of a new decree, which is aimed at supporting domestic enterprises involved in the development and production of electronic products for defense needs.

According to the document prepared by the Ministry of Industry and Trade of Russia, it is planned to adjust the mechanism for applying reduced insurance premiums for suppliers of electronic products under the state defense order. This document was published on the federal portal of regulatory legal acts and is aimed at reducing the costs of manufacturers, which will allow them to increase competitiveness in the world market.

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According to Parlamentskaya Gazeta, the changes will affect the provision on state regulation of prices for products supplied under the state defense order. In particular, it is proposed to take into account the profit received from tax savings when calculating the profitability of products. This will allow enterprises participating in the execution of the state defense order to receive tax benefits in full, without reducing profitability due to the inclusion of insurance premiums at reduced rates in the price of products.

The problem associated with the lack of benefits arose as a result of the application of reduced insurance premium rates, which were introduced as part of the support of the IT industry. However, for enterprises operating under the state defense order, these tariffs led to a decrease in the cost of production, which, in turn, reduced the profitability and final cost of products. The new ruling should address this imbalance.^[1]

The Federation Council is preparing measures to support employees of radio electronics companies

The Federation Council is working on state support measures for employees of companies producing electronic products (RAP) and an electronic component base. This became known in August 2024.

According to Vedomosti, in July 2024, Konstantin Dolgov, deputy chairman of the Federation Council Committee on Economic Policy, sent a request to the heads of consortia in the field of electronic industry.

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The work itself is carried out as part of improving the system of measures of state support for the domestic radio-electronic industry. According to the head of the Association of Developers and Manufacturers of Electronics (ARPE) Ivan Pokrovsky, attention and support from the state is more directed to the IT industry, which creates a "bias in the development of industries" and contributes to the outflow of personnel from electronics to IT.

In the radio-electronic industry of Russia, by August 2024, about 300,000 people work. Unlike IT employees, who have a number of preferences, including a deferral from the army and a preferential mortgage, employees of the electronic industry are still deprived of such support mechanisms.

The head of the Printed Circuit Board Consortium, Vladimir Semenov, notes that more than 3,000 specialists a year are required for Russian printed circuit board manufacturers alone. He considers it necessary to increase the number of higher and secondary vocational education programs in the field of radio electronics, as well as to increase the number of budget places through state co-financing.

According to the data, from Rosstat 2021 to 2023, the average monthly accrued wages of employees of organizations of the radio-electronic industry increased from ₽64 600 to ₽92 000. However, the industry is facing an ageing personnel - with the average age of half of workers approaching 50.^[2]

The Government of the Russian Federation will extend tax breaks for manufacturers of radio electronics

The Russian government intends to extend tax breaks for manufacturers of radio electronics until 2030. This became known on August 7, 2024 from the message of the Ministry of Industry and Trade of Russia.

According to Vedomosti, the Ministry of Industry and Trade is actively working with the Ministry of Finance on the issue of maintaining a reduced income tax rate for radio-electronic companies. The representative of the department said that the decision had already been made at the highest level, and expressed hope for the Ministry of Finance to amend the Tax Code during the autumn session of 2024.

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Manufacturers of electronic products (RAP) and components pay income tax at a preferential rate of 3%. However, this benefit is valid only until the end of 2024. Without an extension from 2025, the rate for industry enterprises could rise to 25%.

The initiative to extend tax preferences for RAP producers comes from the Federation Council. Deputy Chairman of the Committee on Economic Policy Konstantin Dolgov sent inquiries about the need for such a measure to several profile associations on July 19, 2024.

According to industry experts, the extension of tax benefits is extremely important for the development of the electronic industry in Russia. Sergey Dolgopolsky, Vice President for Business Development and authorities Relations at GS Group, noted that in the context of sanctions and the need for active import substitution, increasing the tax burden could be disastrous for many enterprises in the sector.

Representatives of industry associations emphasize that the company's funds saved thanks to benefits are directed to new developments and expansion of production. This, in turn, contributes to the creation of new jobs and increased sales volumes, which ultimately leads to an increase in tax revenues to the budget.^[3]

Russian President Vladimir Putin instructed to reduce taxes for manufacturers of radio electronics

On July 30, 2024, the president Russia Vladimir Putin instructed to reduce the income tax rate and insurance premiums for enterprises producing equipment and materials for radio electronics. This is expected to contribute to the development of the relevant industry.

The order is contained in the list of instructions following a meeting of the Council on Science and Education and a meeting with recipients of mega grants and leading scientists. The document says about the need to ensure the introduction into the legislation of the Russian Federation of changes aimed at applying a reduced rate on income tax and reduced rates of insurance premiums for organizations engaged in the production of special technological equipment, components and consumables for the radio-electronic industry. Russian Prime Minister Mikhail Mishustin has been appointed responsible for the execution of the order. The deadline is set until April 1, 2025.

source = Kremlin Website

In addition, the Government of the Russian Federation, together with the federal state autonomous institution "Russian Fund for Technological Development," was instructed to prepare proposals on measures to support domestic manufacturers introducing the results of scientific research and development into industrial production. It is also necessary to develop and implement measures to attract leading researchers and specialists (including foreign ones) to participate in scientific developments, including projects related to the creation of unique scientific installations.

As noted by TASS, as of the end of July 2024, reduced rates on income tax and insurance premiums are valid for electronic enterprises included in a special register. However, they do not include manufacturers of equipment for the electronic industry.^[4]

Recipients of subsidies for the development of electronics and radio electronics do not meet targets

Accounts Chamber Russia revealed that recipients of development subsidies electronic engineers and radio electronics did not meet targets. This was announced on July 10, 2024 by the auditor of the chamber Andrei Perchyan at a round table meeting in Federation Council.

According to Kommersant, during the inspections, numerous facts of non-achievement of targets for projects implemented by recipients of subsidies under the state program "Development of the electronic and radio-electronic industry for 2013-2025" were noted.

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In total, more than 295 billion rubles were allocated for this state program in the period from 2013 to 2024. The funds were directed, among other things, to the creation of an electronic component base.

Andrei Perchyan noted that even in cases of individual companies meeting indicators on the volume of production and sales of products, this often testifies only to the organization of small-scale production. According to him, such volumes "cannot lead to the achievement of technological independence."

The Accounts Chamber of the Russian Federation also emphasized the high dependence of the domestic electronic industry on the foreign electronic component base and the presence of significant restrictions on access to technologies.

The Ministry of Industry and Trade of the Russian Federation, responsible for the distribution of subsidies, admitted that due to sanctions, the deadlines for the implementation of projects were "systematically postponed." The ministry said it was ensuring the work of industry in the face of "unprecedented sanctions pressure."

Market participants note that the lack of necessary specialists affected the implementation of projects. According to the general director of the electronics manufacturer Beshtau Oleg Osipov, the main reason for the failure to achieve the indicators was the unavailability of production for sanctions.

Alexander Senyukov, deputy general director for work with the authorities of T8, connects the failure to comply with the indicators with the fact that funds under subsidy agreements were allocated even before the imposition of sanctions.

One of the necessary indicators was the share of export revenue of producers, which in the current conditions is unenforceable, "he explained.[5]

The Ministry of Industry and Trade has developed measures to support Russian processor manufacturers in order to "equalize their cost with Intel"

July 3, 2024 Ministry of Industry and Trade Russia announced the development of measures to support Russian processor manufacturers in order to equalize their cost with chips. Intel This initiative is aimed at reducing the final cost of domestic processors and stimulating demand for them in the context of limited access to foreign technologies and components.

The Ministry of Industry and Trade is considering the possibility of subsidizing domestic processor developers. This will allow Russian electronics manufacturers, including computers and servers, to produce products based on domestic chips without increasing the cost of final equipment. The Ministry of Industry and Trade explained that a financial and economic model is being formed and the main conditions for providing support, which may include subsidies for a discount or compensation for lost income.

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The founder of the SPC "" Elvis Jaroslav Petrichkovich noted that the production of domestic processors is complicated by sanctions EU and. USA He also stressed that even before the imposition of sanctions, Russian processors lagged behind their foreign counterparts by 10-15 years, which made equipment based on them less competitive. Petrichkovich believes that subsidizing the difference in the cost of processors will require relatively small costs from the budget, but due to the low competitiveness of Russian chips, Western and Chinese processors will most likely be preferred.

Ivan Pokrovsky, director of the Association of Russian Developers and Electronics Manufacturers, believes that supporting processor development would be a more effective measure. He explains that the final cost of the processor depends on development costs and production volume. With small print runs, as now, the cost of domestic processors turns out to be uncompetitive. According to him, subsidizing development requires from 6 to 9 billion rubles a year.

A source from among electronics manufacturers told Kommersant that the market lacks the necessary volumes of Russian processors, despite the high interest in them. Russian processors are much more expensive and have problems with functionality, since most of the software is designed for the x86 architecture (Intel and AMD). The source believes that subsidies will not solve all problems, since it is necessary to establish access to chip factories, most of which are in unfriendly countries.^[6]

Russian microchip developers ask the Ministry of Industry and Trade to support the industry

At the end of June 2024, it became known that the Association of Russian Developers and Electronics Manufacturers (ARPE) appealed to the Ministry of Industry and Trade with proposals to support the industry. We are talking, in particular, about abandoning plans to label radio-electronic products.

According to the Kommersant newspaper, ARPE sent a letter to the head of the Ministry of Industry and Trade Anton Alikhanov. The organization asks to extend tax breaks to contract electronics manufacturers, change the terms of existing agreements on subsidized R&D projects, and consider proposals for investment support for semiconductor factories. In addition, it is proposed to study issues related to product labeling. The head of ARPE Ivan Pokrovsky says that the costs of introducing labeling and the operator's fees from the industry will amount to "tens of billions of rubles," which may negatively affect its development. Some market participants also note that the labeling "carries sanction risks for electronics and microelectronics suppliers that will be displayed in the supply chain."

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In addition, Pokrovsky points out the need to revise the terms of agreements on subsidized investment projects if companies assumed revenue obligations before the imposition of sanctions. In the formed geopolitical situation, many such projects were stopped due to the inaccessibility of microcircuits or changes in the regulatory framework and demand, including "refusal of requirements for the use of Russian microprocessors."

Oleg Emeramrudov, director of the Consortium of Russian Storage Systems Developers (RosSHD), believes that the prospects for ARPE proposals will depend on the priorities of the Ministry of Industry and Trade. The agency is engaged in the regulation of not only the radio electronics industry, but also many other areas, including the auto industry and the military-industrial complex.^[7]

The Ministry of Industry and Trade froze state support for radio electronics to check previously issued subsidies

The Ministry of Industry and Trade (Ministry of Industry and Trade) of Russia has suspended state support programs for the electronic industry. This became known on June 17, 2024.

According to Vedomosti, this decision was made as part of an audit of the effectiveness of the use of previously issued subsidies. According to the publication, the Ministry of Industry and Trade is conducting a comprehensive audit of the subsidies issued for projects in the development and production of radio electronics. The reason for the freeze was the failure of a number of companies to comply with the established indicators under the program "Development of the electronic and radio-electronic industry," as well as the lack of additional funding. The new Minister of Industry Anton Alikhanov, appointed in May 2024, supports this step.

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All frosts and transfers are made in order to bring results and revise previous subsidies. One way or another, the same market participants received funding, "the source explained.

The representative of the Ministry of Industry and Trade noted that the department regularly conducts inspections of the implementation of subsidies during the year, including planned and unscheduled audits. In addition, inspections are carried out annually by the General Prosecutor's Office, the Accounts Chamber and the Treasury of Russia. He added that the financing of projects is carried out in accordance with the planned parameters of budget financing.

State support for electronics developers is carried out mainly in the form of subsidies allocated under government decrees No. 109 and No. 1252. The first establishes the rules for reimbursing part of the costs of creating a scientific and technical reserve for the development of priority electronic components, the second - the rules for providing subsidies for the creation of an electronic component base.

Among the companies that have transferred subsidies for projects are called ICST, NTC "Module" and "Aquarius." For example, one of the companies hoped to receive up to 1.5 billion rubles for the project in 2024, but the issuance of the subsidy was postponed to 2025.^[8]

2023

Ministry of Industry and Trade increases subsidies from 350 million to 1.5 billion rubles

The Ministry of Industry and Trade is increasing subsidies to electronics manufacturers (servers, storage systems, laptops, etc.) by 4 times, which became known on February 8, 2023.

As Kommersant writes with reference to the draft government decree developed by the department, the maximum amount of subsidies to developers and electronics manufacturers will be increased from 350 million to 1.5 billion rubles. The document also talks about expanding the conditions under which the recipient of the subsidy can revise the deadlines for fulfilling the requirements of the resolution in terms of production and commercialization of products. If the organization proves to the Ministry of Industry and Trade that it cannot manufacture or order microelectronics necessary for the project at foreign factories, the implementation period may be extended, the publication says.

Ministry of Industry and Trade increases subsidies to electronics manufacturers by 4 times

According to the ministry, thanks to the amendment, it will be possible to specify the circumstances affecting the timing of the project. This will reduce the risks of default by companies if this is caused by circumstances beyond their control. According to sources of the publication, earlier subsidies were received, for example, by Russian developers of components produced abroad, since such components were considered domestic.

According to lawyers and market participants interviewed by the publication, the measures introduced by the Ministry of Industry and Trade will help manufacturers who do not have time to implement projects due to sanctions to avoid lawsuits from the ministry in case of delays in projects. Zelax President Sergei Sukhman says that he already knows a number of cases when Russian electronics developers who received subsidies from the Ministry of Industry and Trade before sanctions restrictions could not fulfill the requirements for the release of products due to problems with the supply of components from abroad.^[9]

Mishustin allocated 7.5 billion rubles to support Russian manufacturers of radio electronics

On January 30, 2023, Prime Minister Mikhail Mishustin announced the government's decision to allocate 7.5 billion rubles for the implementation of a state program to support manufacturers of electronic products. We are talking about subsidizing loan rates for such enterprises within the framework of the state program "Development of the electronic and radio-electronic industry."

The Prime Minister said that borrowed funds at subsidized rates of up to 5% per annum from 2023 will also be available for manufacturers of telecommunications and office equipment (printers, scanners, faxes, mobile and landline phones, etc.). Another innovation is that the period of concessional lending under the program has also been increased from one year to five years. The maximum loan size is 100 billion rubles.

Mikhail Mishustin

In the context of external restrictions, the logistics of supplies have changed, and of course, the cost of the electronic component base. To help Russian computer manufacturers last [2022], they launched a program to subsidize interest rates on bank loans. This mechanism has shown its relevance: billions of rubles of funds raised were used to purchase the necessary components and materials, - said Mishustin at a meeting with Deputy Prime Ministers on January 30, 2023.

A decree was signed ischally on the provision of subsidies to banks to reimburse lost income on loans for the purchase of an electronic component base, other components, materials necessary for the production of computer equipment - the amount of subsidies for 2022 was 18.5 billion rubles. Then this amount was reduced to 3.9 billion rubles, indicates the publication D-Russia.^[10]

2022

Russian manufacturers of radio electronics will receive subsidies of 111 billion rubles

Russian manufacturers of radio electronics can receive subsidies from the state in the amount of 111 billion rubles during 2023-2025. This was announced on September 28, 2022 by Interfax with reference to the draft budget submitted by the Cabinet of Ministers to the State Duma of the Russian Federation.

The greatest support - 46 billion rubles - is provided for under the state program "Development of the electronic and radio-electronic industry." Various legal entities can participate in it, with the exception of state corporations and state-owned companies (public law companies), the agency points out.

Russian manufacturers of radio electronics will receive subsidies

In 2023, the total amount of subsidies to support the electronic industry may amount to 20.7 billion rubles. Of these, 2.25 billion rubles can be received by Russian credit organizations as compensation for their lost income on loans issued to enterprises in the field of the electronic and radio-electronic industry. The same maximum amount of subsidies for the same purposes is set for the planned 2024.

Another 17.3 billion rubles in 2023, Russian companies can receive in the form of subsidies for the financial support of part of their costs for the creation of an electronic component base (ECB) and modules. In 2024 and 2025, the total amount of such subsidies may amount to 16.4 billion and 16 billion rubles, respectively.

Another 1.1 billion rubles in 2023, the state is ready to allocate to support the development of competitive niche hardware and software systems for artificial intelligence systems. In 2022, the volume of this support may amount to 478 million rubles.

In addition, 65 billion rubles in the form of subsidies, Russian radio electronics can receive within the framework of the state program "Scientific and Technological Development of the Russian Federation." The State is also ready to allocate 17.4 billion rubles to Russian companies as financial support for part of their costs for the creation of a scientific and technical reserve for the development of basic technologies for the production of priority electronic components and electronic equipment.^[11]

Mishustin approved the parameters for allocating subsidies to technology parks in the field of the electronic industry

At the end of September 2022, Prime Minister Mikhail Mishustin signed a decree approving the parameters for allocating subsidies to technology parks in the electronic industry. We are talking about the allocation of 7.2 billion rubles. Read more here.

Mishustin allocated 7.2 billion rubles to support technology parks in the electronic industry

Prime Minister Mikhail Mishustin signed a decree that launched a new program to support the development of the infrastructure of industrial technology parks, whose resident companies specialize in the production of electronics. The press service of the Cabinet of Ministers announced this on September 26, 2022. Read more here.

The Ministry of Industry and Trade will introduce subsidies for the production of smartphones and laptops in Russia

On September 3, 2022, the Ministry of Industry and Trade announced plans to introduce subsidies for the production of tablets, smartphones and laptops in Russia. According to Kommersant, the total amount of state support for the industry will grow from 144 billion rubles in 2022 to 210 billion rubles in 2023.

According to the top manager of a large Russian electronics manufacturer contacted by the newspaper, by the beginning of October 2022, companies can receive subsidies for the development of components or the launch of production, while the production of commercial batches of products is a capital-intensive process, and state support is also needed here.

The Ministry of Industry and Trade of the Russian Federation will enter subsidies for production of smartphones and laptops

The mechanism of subsidies for the serial production of electronics, as conceived by the Ministry of Industry and Trade, should help Russian manufacturers get on the shelves of retail chains in order to compete with foreign equipment, the source said, close to the ministry.

The subsidy will help reduce the cost of equipment, as well as occupy market segments as soon as possible, which may not be occupied due to the departure of foreign companies, the source noted, adding that, most likely, the key condition for obtaining a subsidy will be the localization of electronics production in Russia.

Subsidies from the Ministry of Industry and Trade and the Ministry of Agriculture have proven themselves well in Russia, allowing banks and leasing companies to provide preferential loans to borrowers in priority industries, compensate for part of capital expenditures, and finance R&D, Aquarus noted. Such a practice should be fully extended to microelectronics, the company is convinced.

Director of Promobit (in 2022 developed a Bitblaze laptop) Maxim Koposov, in a conversation with the publication, noted that the support mechanisms in force by the beginning of October 2022 allow you to receive a subsidy for the production of an experimental, not commercial series of electronics, but it is virtually impossible to get even a non-concessional loan for the production of commercial batches of electronics.^[12]

The state will reimburse retailers for advertising costs of Russian computer manufacturers

Retailers will be able to count on government subsidies for advertising Russian electronics manufacturers, including laptops, system units and tablets. This became known on August 18, 2022.

According to Kommersant, large retail chains will be able to receive a subsidy for partial compensation for the cost of promoting Russian electronics without an intermediary in the form of an autonomous non-profit organization.

The state will reimburse retailers for advertising costs of computer manufacturers

According to a newspaper source in the Government of the Russian Federation, large retail chains have expressed interest in selling Russian electronics, but they need state support to promote brands. The consumer should be motivated to at least get acquainted with domestic products. According to preliminary estimates, this requires about 1 billion rubles a year.

The source of the publication on the market reports that laptop manufacturers have repeatedly contacted the Ministry of Industry and Trade with a question whether this support measure will apply to them, but have not received a specific answer.

By August 2022, Russian manufacturers are not focused on the consumer segment and produce electronics for the corporate and public sectors. For example, in retail chains, Russian laptops are represented by small-scale ODM devices (original design manufacturer, manufactured at Taiwanese or Chinese enterprises and only branded in the Russian Federation) and cannot compete with well-known brands at a price, explained the director of one of these manufacturers.

To bring laptops and tablets of domestic production to the consumer market, in addition to the marketing campaign, it is necessary to provide manufacturers with preferential loans so that they can issue large batches, says Svetlana Legostaeva, general director of the ANO Computer Engineering consortium. According to her, such loans can be issued to retailers when they guarantee demand.^[13]

2021

For the year, the Ministry of Industry and Trade issued more than 4.4 billion rubles in subsidies to manufacturers of electronic products

As TAdviser was told in the Ministry of Industry and Trade, for 5 months of 2021 in Russia, manufacturers of the electronic component base and modules were issued 4.4 billion rubles. After the publication of government decree No. 1252 of July 24, 2021 "On Approval of the Rules for the Provision of Subsidies from the Federal Budget to Russian Organizations for the Financial Support of Part of the Costs of Creating an Electronic Component Base and Modules," the Ministry of Industry and Trade received more than 100 applications from Russian companies. ^[14]

Subsidies in 2021 were received by: Micron, Baikal Electronics, Kvant, NPC Elvis, Silicon El Group, PAC Milander, Zavod Atlant, SPC Aerospace Systems, PC Aquarius, NPP Digital Solutions, JSC «Proton», NPP Almaz, NIIET [1] , etc.

The Ministry of Industry and Trade commented on TAdviser that state subsidies are in demand on the market.

In 2021, the Ministry of Industry and Trade issued more than 4.4 billion rubles in subsidies to manufacturers of electronic products

According to TAdviser in Baikal Electronics, in September 2021, the company participated in a thematic competition for projects to create an electronic component base and modules, under the terms of which the state reimburses part of the costs of their implementation. According to the results of the competition, the company won and claims to receive more than 9 billion rubles from the Ministry of Industry and Trade to create two new processors: Baikal-L for mobile devices and Baikal-S2 for powerful supercomputers and server equipment. Baikal Electronics is confident that subsidies are an effective market tool for state support, which directly contributes to the development of domestic microelectronics. "

Marketing Director [2] of MCSTKonstantinin Trushkin, answering TAdviser questions, said that the company in 2021 applied for state subsidies, but the application did not go through the competition.

Subsidies are a very effective measure of support for developers and electronics manufacturers. Even despite the fact that it is extremely difficult to fulfill all the requirements prescribed in government decree No. 1252, we are interested in obtaining state subsidies. Therefore, in 2022 we will apply again, - Konstantin Trushkin told TAdviser.

In 2021, the Ministry of Industry and Trade rejected several dozen projects claiming to issue state subsidies, which came from Micron, MCST, Elvis SPC, Avarius PC , Sozvezdiye Concern, NPP Pulsar, RuSat Automated Control Systems, NPP Elar, TsNII Electron, etc.

At the same time, not all Russian manufacturers of radio electronics apply for subsidies. Thus, Director of Communications at Yadro Anastasia Zhuravleva told TAdviser that the company is developing completely through its own investments.

The government was offered benefits for electronics manufacturers using Russian processors

On May 31, 2021, it became known about measures to stimulate electronics manufacturers to use Russian microprocessors, which were proposed to the government by the autonomous non-profit organization for the development of the radio-electronic industry "Consortium" Computing Technology "(ANO" VT ") and the non-profit association" Association of Russian Developers and Electronics Manufacturers "(ARPE).

According to TASS, the Information Agency of Russia with reference to the relevant document, its authors propose at the legislative level to introduce a gradation of products related to Russian computer technology, dividing it into two groups, depending on which processor is used in its production - Russian or foreign. It is noted that this design will make it possible to implement a flexible approach to the use of Russian processors.

Russia proposed to stimulate microprocessor manufacturers with benefits

For manufacturers of Russian equipment on domestic processors, it is proposed to introduce additional benefits and incentives. Representatives of the industry consider it expedient to allocate subsets for Russian products on domestic processors within quotas for the purchase of Russian products.

Another business proposal is to consolidate by government acts that support in the form of subsidies for the development of computer equipment can be carried out only if the equipment is developed on the basis of a domestic central processor.

According to Svetlana Legostaeva, General Director of ANO VT, the Unified Register of Russian Radio-Electronic Products by the end of May 2021 already has products based on domestic processors of consortium participants.

ANO "VT" and ARPE believe that state subsidies should be calculated by those companies whose share of sold products built on the basis of domestic microprocessors is at least 70%.^[15]

The Ministry of Industry and Trade has developed a program to support Russian auto electronics

On April 13, 2021, it became known about the program developed by the Ministry of Industry and Trade to support Russian automotive electronics. We are talking about providing automakers with subsidies of 4 billion rubles a year in exchange for the use of domestic components, including electronic units for active and passive safety, engine control, gearboxes, drive, brake system, ADAS and driver assistance, as well as other telematics.

But in order to receive a subsidy, companies must undertake in five years to achieve the use of at least 70% of Russian electronics in final products (90% when providing services to consumers), Kommersant writes with reference to the document.

The Ministry of Industry and Trade has developed a program to support Russian auto electronics

According to the plans of the Ministry of Industry and Trade, support for the introduction of Russian electronics into serial vehicles will be provided by compensating for various costs associated with this. In particular, it is planned to compensate up to 50% of the costs for the purchase and implementation of Russian solutions and up to 90% of the costs for research and development of modules and an electronic component base.

The ministry believes that the automakers participating in this program will receive the main benefit from the growth of localization, which will lead to an increase in waste collection compensation - they are paid to holders of special investment contracts. So, now with an average subsidy for one car of 100 thousand rubles (in reality, more - the size directly depends on the waste collection, which is tied to the engine volume for the passenger segment), due to the localization of the engine control unit, it will be possible to "earn" 2.2 thousand rubles. In addition, according to the calculations of the Ministry of Industry and Trade, the concerns will receive another 300 rubles of savings through a subsidy to compensate for implementation costs.

However, market participants interviewed by the newspaper indicate the complexity and duration of the replacement process, for example, the engine control unit: the main costs are validation, internal tests, calibration. Then you need to re-certify the machine, as the key element changes.^[16]

2016

Russian Microelectronics Guaranteed Procurement Plan

In April 2016, the government commission on IT in government agencies approved a plan for guaranteed purchases of Russian microelectronics, and also decided to create a subcommittee that will coordinate the work of authorities in terms of the introduction of domestic microelectronics and computer systems.

Commenting on the approval of the plan, Minister of Communications Nikolai Nikiforov explained that "microelectronic products are used in many areas, these are various kinds of identification documents that can be used for a citizen's identity card, driver's licenses, special documents for military personnel, electronic health insurance policies, and many, many other areas."

According to Nikiforov, all expenses that are provided for by the procurement plan "are actually already budgeted in the relevant sections of the federal budget assigned to certain departments." Additional funding is not provided and is not planned.

The largest buyers in terms of the civilian bloc are the Ministry of the Interior (see more) and the Ministry of Health, the minister added.

The plan involves the purchase in 2016-2018 of about 50 million units of various types of products with domestic microchips.

is some basic plan that I think will expand quickly enough. For example, through the Ministry of Telecom and Mass Communications of Russia, we already had experience in announcing the purchase of even server equipment on domestic processors called Elbrus, "Nikiforov said

The fact that the Ministry of Telecom and Mass Communications is preparing a draft plan for "guaranteed purchases of Russian civil microelectronic products for the medium term for computer equipment and hardware and software systems," TAdviser first wrote in December 2015.

The document was developed in pursuance of the order of Prime Minister Dmitry Medvedev of October 29, 2015. As of December 7, 2015, the draft plan, according to TAdviser, was approved by the interested departments.

Federal authorities and the state corporation Rosatom will have to purchase computing equipment "based on a central processor of domestic production," the draft document said.

Among the largest buyers of equipment on Russian processors, according to the draft plan, the following stood out:

• the Ministry of Telecom and Mass Communications itself (59.9 thousand units in 2016 and 15 thousand in 2017),
• Rosstat (25.9 thousand units each in 2016 and 2017),
• Ministry of Internal Affairs (24.4 thousand and 35 thousand),
• Rosatom (12.9 thousand and 12.6 thousand),
• FCS (7.3 thousand each),
• Ministry of Defense (6.8 thousand in 2016).

The developer and processor manufacturer in the draft plan that TAdviser reviewed was not specified, although there was a corresponding column in the table. As of April 2015, at least two microprocessors have been developed in Russia - Elbrus and Baikal-T1.

On behalf of Dmitry Medvedev, the Ministry of Telecom and Mass Communications has prepared a plan for guaranteed purchases of Russian civil microelectronic products for the medium term for computer equipment and hardware and software systems

In November 2015, the representative of the ICST (developer of Elbrus) Konstantin Trushkin told TAdviser about the start of sales of the first servers based on the Elbrus processor. According to him, since the launch of production in March 2015, about 20 servers have been implemented. The company hoped to sell the same amount by the end of 2015.

The names of the organizations that acquired the first servers based on Elbrus were preferred not to be disclosed by the ICST. According to Trushkin, now they are purchased mainly by federal executive bodies for the purpose of import substitution, reacting to the changed political situation. In February 2016, it was reported about the purchase of servers based on Elbrus processors from the Pension Fund.

As for Baikal-T1 processors, sales of test boards based on them began in 2015. More than 100 companies became buyers of samples. Publicly , the company "Axitech" has already announced the use of Baikal-T1 in its devices (automation and telemetry systems for industrial and municipal facilities - primarily in the gas industry of Russia).

Baikal-T1 is intended primarily for communication solutions, industrial automation and built-in systems. You can create thin clients based on it, but not full-fledged PCs or servers. For them, the next processor in the line is being developed - Baikal-M, engineering samples of which should be presented in 2016.

Resolutions on state support for enterprises of the radio-electronic industry

February 20, 2016 on the website of the Government of the Russian Federation published decisions on measures of state support for enterprises of the radio-electronic industry.

The signed resolutions determine the procedure for granting subsidies from the federal budget to Russian enterprises and organizations for the implementation of projects within the framework of the subroutines of the state program "Development of the electronic and radio-electronic industry for 2013-2025^[17].

The resolutions were introduced by the Ministry of Industry and Trade of Russia.

Subsidies for the creation of infrastructure of the radio-electronic industry

Decree No. 110 of February 17, 2016 approved the rules for granting subsidies from the federal budget to Russian enterprises of the radio-electronic industry to compensate for part of the cost of paying interest on loans received from Russian credit institutions for the implementation of projects to create the infrastructure of the industry, including clusters in the field of radio electronics.

In accordance with the rules, subsidies are provided to organizations that have passed the competitive selection for the right to receive a subsidy on loans received for the implementation of complex projects, the implementation period of which does not exceed five years, and the total cost is according to the subroutines of the state program:

• for telecommunications equipment - up to 1.5 billion rubles;

• for computing - up to 2.5 billion rubles;

• for special technological equipment - up to 2 billion rubles;

• for intelligent control systems - up to 1 billion rubles.

Subsidies are subject to loans issued for a period of at least one year, received by Russian credit institutions no earlier than January 1, 2016 for the creation of industry infrastructure as part of a comprehensive project, providing investment expenses for the acquisition or long-term lease of land plots for the creation of new production facilities, development of design and estimate documentation, construction or reconstruction of production facilities, construction, installation and commissioning works, as well as purchase, manufacture and delivery of equipment.

Subsidies for the development of basic technologies for the production of priority electronic components and electronic equipment

Decree No. 109 of February 17, 2016 approved the rules for granting subsidies from the federal budget to Russian organizations to reimburse part of the costs of creating a scientific and technical reserve for the development of basic technologies for the production of priority electronic components and electronic equipment.

In accordance with the rules, subsidies are provided to organizations that have passed the competitive selection for the right to receive a subsidy, for projects whose implementation period does not exceed five years, and the total cost and the maximum annual amount of the subsidy provided is made up of the state program subroutines:

• for telecommunications equipment - up to 1.5 billion rubles and no more than 300 million rubles;

• for computing - up to 2.5 billion rubles and no more than 400 million rubles;

• for special technological equipment - up to 2 billion rubles and no more than 300 million rubles;

• for intelligent control systems - up to 1 billion rubles and no more than 200 million rubles.

Competitive selection of projects for the right to receive subsidies is carried out in two stages:

• scientific and technical assessment of projects the advisory council created by Minpromtorg of Russia;

• evaluation of projects that have passed scientific and technical expertise by the competition committee of the Ministry of Industry and Trade according to a number of criteria, the main of which are the volume of production and sale of import-substituting or innovative products, the number of newly created high-tech jobs, the number of patents and (or) production secrets (know-how), the implementation period of the complex project and the volume of exports of created products.

The decisions made will contribute to the implementation of projects to create the infrastructure of the industry, including industrial clusters, an increase in the share of import-substituting and innovative goods in the total production of electronic and radio-electronic products.

2015: State subsidy of interest rates and research

On November 22, 2015, it became known about ways to support the government of the Russian radio-electronic industry as part of the import substitution program. It is planned to subsidize interest rates and research.

As Vedomosti writes with reference to the draft government decree published by the Ministry of Industry and Trade on the portal for discussing regulatory acts, the ministry is going to compensate for the payment of interest on loans that participants in the import substitution program of radio electronics will take on the lease of land and buildings, the development of project documentation and the creation of infrastructure. The term of such a loan should exceed a year, and it will be possible to take it from 2016 to 2025.

The government will support domestic radio electronics

In addition, the Ministry of Industry and Trade subsidizes part of the costs of research from the budget. Those companies that will pass the agency's competition will be able to receive reimbursement for these expenses and the loan. The maximum compensation for manufacturers of communication equipment will be 1.5 billion rubles, for projects in the production of computer equipment and special technological equipment - 2.5 and 2 billion rubles, respectively. Finally, developers of intellectual control systems are entitled to state payments in the amount of up to 1 billion rubles.

According to the state program for the development of domestic radio electronics, which was announced by the Ministry of Industry and Trade at the end of October 2015, the total budget subsidies until 2025 will reach 175.7 billion rubles. Support for radio electronics is planned to be carried out in four areas:

• telecommunication equipment,
• computing,
• equipment for the production of electronic components and
• intelligent control systems.

The Ministry of Industry and Trade expects that the implementation of the import substitution program will help reduce the share of imports in the computer market to 97.6% by 2020 and to 93.3% by 2025 against more than 99% by November 2015.^[18]

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