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RUSSIA’S MICROELECTRONICS INDUSTRY GAINS STEAM

August 20, 2014

A worker of Micron Plant with an enviromentally-sealed container for wafers with microchips. © Vitaliy Belousov, RIA Novosti

thinkRUSSIA looks at Russia’s growing IT industry and the advances in micro-processor technology currently being developed. It is hoped that one day Russian computer chips will be able to compete with manufacturers in the U.S. and EU.

Set up in 1992, Moscow Center of SPARC Technologies (MCST) is a private microprocessor manufacturer which has attained a good record in the development of the Russian IT industry. The company develops high-performance universal Russian microprocessors and computer systems and its team members have, over the years, participated in the creation of several generations of powerful Soviet "Elbrus" computers. Now, after three years of development and a $24.4 million investment by Russia’s Industry and Trade Ministry, MCST has announced the launch of the production of Elbrus-8C microprocessors, the first eight-core Russian microprocessors to hit the market.

The new microprocessor will use 64-bit processing and be capable of 250 gigaflops of computational power. It will be built using 28nm topology which will enable it to consume very little power, making the processor as environmentally friendly as possible. The first chips are planned to be shipped to partners in October 2014 with promises to produce 300 copies by the end of 2014.

Meanwhile, in mid-June it was announced that the government would also be funding a project to build a custom microprocessor codenamed Baikal, based on ARM architecture. The first, 28nm eight-core version of the processor is scheduled to be launched in early 2015. The company commissioned to execute the project is "Baikal Electronics," a subsidiary of the supercomputer designer "T-Platforms," again with the backing of Russia’s Ministry of Industry and Trade.

More to come in the next two years

However, the news does not stop there. Earlier this year, MCST signed a contract with the Industry and Trade Ministry for the development of a 16-core microchip with a process of under 20nm that should be developed by the end of 2018. At the same time, it was announced that Baikal will release a more powerful, 16-core server processor based on 16-nm process technology in late 2016.

In the future, the use of both series of microchips will most likely not be limited to PCs but also to servers, workstations and telecom equipment.

Domestic microelectronics: a matter of security…

Both the Baikal and Elbrus projects emerged from a national strategy, established in 2010, which foresees the migration of all government computers to a Linux-based operating system and the creation of a domestic microelectronics component base.

Government interest in domestic microprocessor development certainly isn’t a new or a strictly Russian phenomenon. Many emerging economies are considering this option and China already uses GNU/Linux with its Loongson processor family as a means of developing its own domestic IT capabilities as well as enhancing information security.

… and a prospective market

Both MCST and Baikal microprocessors will primarily be used for workstations and computers equipment for public institutions, universities, and business structures which place increased demands on information security. This is not a negligible market given that government bodies and state-run firms in Russia require around 700,000 personal computers and 300,000 servers annually worth $500 million and $800 million, respectively. All together, the volume of the market amounts to about 5 million devices worth $3.5 billion, which will hopefully allow Russian businesses to expand production and reduce prices.

Future prospects

The manufacturer’s main hope is that the new chips gradually replace the imported ones on the domestic market but there is obviously still a long way to go as, at this stage, Elbrus and Baikal are not yet in a position to compete with the likes of Intel, AMD or IBM in an open market.

However, the market perspectives seem quite bright. Investment in Russian microelectronics industry, both by the Government and through equity investment by private investors, is projected to reach $6.3 billion by 2015. At this moment, however, the release of Elbrus-8C and Baikal is a huge step forward.  Finally, they are on an excellent track to achieving their raison d’être: having a homegrown computer technology manufacturing base.