Russia and Iran to Jointly Develop Microelectronics, Bypassing Sanctions

Russia and Iran have signed a memorandum of cooperation to jointly develop and manufacture microelectronics on March 10.

The agreement, formalized between the Zelenograd Nanotechnology Center (ZNTC) and Iran’s Headquarters for the Development of Nano- and Microtechnologies, aims to establish sustainable production and supply chains amid existing restrictions, according to Russia’s Ministry of Industry and Trade (Minpromtorg).

According to Russian media Kommersant, under the agreement, ZNTC will serve as an integrator of contract manufacturing for Iranian design centers, focusing on the production of lithographic equipment for chip printing, telecommunications multiplexers, and various automotive sensors. According to ZNTC’s General Director Anatoly Kovalev, the partnership will also facilitate the exchange of expertise and personnel in the field of microelectronics.

At this stage, direct investment is not being discussed, but the estimated cost of manufacturing a lithographic machine for 350nm wafer printing is approximately $4.5 million, Kovalev noted.

Industry experts indicate that while the Iranian market for microelectronics remains niche, it presents an opportunity for Russian companies to expand internationally. The founder of the Scientific and Production Center “Elvis,” Yaroslav Petrychkovych, commented that Russian manufacturers are interested in entering new markets, including Iran, but the focus will likely be on specialized products.

The partnership aligns with Russia’s broader strategy to diversify its supply chains. While China remains the country’s primary partner in microelectronics, analysts suggest that collaboration with Iran could provide alternative sources for key components.

According to a report by consulting firm Kept, the Russian microelectronics market is projected to grow 2.7 times by 2030, potentially reaching approximately $8.75 billion, with an optimistic scenario exceeding $11.22 billion. In 2022, Russia’s share in the global microelectronics market remained below 1%, while the total market volume of “friendly” countries was estimated at $227 billion.

Earlier, Iran’s Islamic Revolutionary Guard Corps confirmed the purchase of Russian-made Su-35 fighter jets for the first time, according to Brigadier General Ali Shadmani. While he did not specify the number of jets or their delivery status, the acquisition aligns with Iran’s broader military procurement strategy.