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March 20, 2025 Special Dispatch No. 11883

Russian Media Outlet Kommersant: Russia And Iran Sign Memorandum On Joint Production Of Microelectronics

March 20, 2025
Iran, Russia | Special Dispatch No. 11883

On March 10, 2025, the Russian media outlet Kommersant published an article about joint Russian-Iranian production of microelectronics. The Zelenograd Nanotechnology Center, which manufactures lithographs, sensors, microcircuits, etc., signed a memorandum of understanding (MoU) with the Iranian Nanotechnology Development Headquarters. The Russian Ministry of Industry and Trade oversees the contract.

The Iranian news agency IRNA wrote: "The new agreement will seek to establish sustainable production chains and explore new markets, and is part of growing cooperation between Russia and Iran in the technology sector.

Under the agreement, the Zelenograd Nanotechnology Center (ZNTC), one of Russia's leading firms in nanotechnology, will work closely with Iranian partners, focusing on the production of advanced nanolithography equipment, telecommunication multiplexers, and automotive sensors."[1]

TV BRICS further reported: "The MoU aims to establish resilient production chains and expand access to new markets. As part of the collaboration, leading Russian enterprises will work with Iranian partners on key technological developments. These include nanolithography equipment for nanoscale engraving, telecommunications multiplexers, and advanced automotive sensors. The initiative is expected to strengthen the microelectronics industry in both countries, with jointly manufactured products being introduced to Iranian and Russian markets."[2]


(Source: Kommersant.ru)

Below is Kommersant's article:[3]

The "Mutual Interest In The Development Of Bilateral Cooperation In The Field Of Radio-Electronic Industry"

"The Zelenograd Nanotechnology Center (which manufactures lithographs, sensors, microcircuits, etc.) signed a memorandum of understanding with the Iranian Nanotechnology Development Headquarters. The [Russian] Ministry of Industry and Trade oversees the contract. It is expected that the deal will facilitate not only a production of Iranian electronics in Russia but also will allow the goods manufactured by the two countries to enter new markets.

"As reported by the Ministry of Industry and Trade, Russia and Iran have concluded in 2025 a bilateral memorandum of understanding on development of cooperation in the radio-electronic industry between the Zelenograd Nanotechnology Center (ZNTC) and the Nanotechnology Development Headquarters of the Islamic Republic of Iran.

"Mutual interest in the development of bilateral cooperation in the field of radio-electronic industry facilitated the signing of the memorandum. 'In the current conditions there are no obstacles to the development of mutually beneficial cooperation aimed at the establishment of sustainable production and distribution chains, except for restrictive measures imposed by unfriendly states,' emphasized a representative of the Ministry of Industry and Trade in a conversation with Kommersant.

"According to SPARK-Interfax,[4] ZNTC was registered in the city of Zelenograd in 2010; the company's revenues and owners are hidden.[5] According to the company's website, ZNTC produces radiation-resistant microchips, sensors, analog-to-digital converters, etc. The company has won seven [state] tenders totaling 8 billion rubles [about $92 million] since 2019, all of which were from the Ministry of Industry and Trade. Also, back in 2021, the Ministry of Industry and Trade allocated 5.7 billion rubles to ZNTC for the development of lithography equipment for the production of 130-65 nm topology processors.

"According to Anatoly Kovalev, General Director of ZNTC, the center will come forward as an integrator of contract manufacturing for Iranian design centers, as Iran yet lacks such projects. In addition, he stated that there will be an exchange of knowledge and employees in the field of microelectronics between the two countries. 'At the moment we are not talking about investments, but the approximate cost of producing a lithograph for printing 350 nm (0.35 microns) chips is around 4.5 million USD,' said Mr. Kovalev, adding that Iranian and Russian microelectronics products will be available in both country's markets."

Iran-Russia "Cooperation Is Developing Not Only In The Field Of Microelectronics"

"A Kommersant interlocutor familiar with the signing of the memorandum elaborated that cooperation with the Iranian side at this stage will cover the production of lithographic equipment for printing chips, telecommunication multiplexers, various sensors for cars, etc. The Ministry of Industry and Trade added that it focuses on joining efforts for cooperative development and production of innovative goods, as well as on entering new markets with domestic technologies and goods.

"As Nima Arjmandi, a spokesperson for Iran's national microelectronics program, stated back in the summer of 2024, the microchip market in Iran is 'not monopolized by anyone.' 'For example, several companies are active in manufacturing of silicon products [microprocessors] and are involved in exports. There are companies in the [computer] hardware sector that began their operations with the support of Iran's Nanotechnology Development Headquarters,' reported ParsToday.[6]

"According to the report on the microelectronics market for 2024 by the [Russian] 'Kept' consulting company, the volume of the Russian market may grow 2.7 times reaching 780 billion rubles by 2030, and in case of an optimistic scenario – to exceed 1 trillion rubles [about 11.6 billion USD]. In 2020-2022, the market's average annual growth rate amounted to about 27%.

"According to Kept's estimates, the Russian market in 2022 accounted for less than 1 percent of the global one (the company doesn't provide more recent data). The company estimated the total volume of the microelectronics market of countries 'friendly' to Russia at $227 billion USD in 2022. China is the leader among Russian partners in this area. Kommersant's interlocutor from electronics manufacturing business believes that the Russo-Iranian project will allow Russia to have component suppliers, alternative to the Chinese ones.

"Russian microelectronics developers are interested in all markets, including that of Iran, stated Yaroslav Petrichkovich, founder of 'Elvees' Research and Development Center. 'However, most likely, we can only talk about specialized products, and this market is quite narrow,' he stressed. The Iranian market may be of interest to Russian microelectronics manufacturers, considering Russia's strong scientific base and manufacturing competencies in the development and production of ECBs [electronic components], argued a representative of the 'Element' Group of Companies. 'Iran comes as one of the first attempts of Russian technology companies to enter the international market,' a Fplus [Russian manufacturer of electronics and equipment] representative added.

"According to Arseniy Brykin, head of the [Russian] 'Basis' consortium, the memorandum is one of the elements of cooperation between the two countries, and there is no doubt that this cooperation is developing not only in the field of microelectronics. He recalled that Iran, like Russia, is under sanctions pressure from the EU and the US, so for the business of both countries the partnership is mutually beneficial. 'In the near future, we can expect partnership in other areas: transport, logistics, technology, energy, etc.,' believed Mr. Brykin."

 

[1] En.irna.ir/news/85775559/Iran-Russia-sign-MoU-to-jointly-build-microelectronics, March 11, 2025.

[2] Tvbrics.com/en/news/iran-and-russia-sign-mou-on-joint-microelectronics-production/, March 12, 2024.

[3] Kommersant.ru/doc/7563596, March 10, 2025. The article was written by Timofey Kornev.

[4] SPARK-Interfax is one of the Russian reference and information systems created for checks of counterparties and assessments of risks.

[5] The list of ZNTC shareholders is not publicly available, however, the centre was founded in 2010 by RUSNANO Corporation, MIET, and the Zelenograd Innovation and Technology Centre. Around 2020-2021, Rusnano and the Skolkovo Foundation were transferred under the management of VEB.RF (the Russian state development corporation and investment company) as part of the reorganization of the structure of development institutions. Thus, it can be assumed that VEB.RF directly or indirectly controls some shares of JSC ZNTC.

[6] Parstoday.ir/ru/news/iran-i202262-%D0%9D%D0%90%D0%A1%D0%90_%D0%B8_%D0%9C%D0%98%D0%A2_%D0%B7%D0%B0%D0%BA%D1%83%D0%BF%D0%B0%D1%8E%D1%82_%D0%B8%D1%80%D0%B0%D0%BD%D1%81%D0%BA%D0%BE%D0%B5_%D0%BE%D0%B1%D0%BE%D1%80%D1%83%D0%B4%D0%BE%D0%B2%D0%B0%D0%BD%D0%B8%D0%B5_%D0%B4%D0%BB%D1%8F_%D0%BC%D0%B8%D0%BA%D1%80%D0%BE%D1%8D%D0%BB%D0%B5%D0%BA%D1%82%D1%80%D0%BE%D0%BD%D0%B8%D0%BA%D0%B8, July 14, 2024.

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