Russian Electronics Companies Forced to Rely on Older Intel and AMD Processors

Russian companies plan to increase motherboard production in 2024 due to a rise in orders. However, they are compelled to rely on previous-generation Intel and AMD processors. The required technical documentation for modern chips is missing from western developers. Attempts to gain access to modern solutions through Chinese firms result in a spike in production costs, according to a Kommersant report.

Increasing Demand Drives Expansion

Last year’s orders surged by 28% prompting electronics manufacturer GS Group to launch a new motherboard production line next February. This step will double their capacity, enabling them to produce up to 1 million motherboards annually. The company invested 200 million rubles in expanding production, and its contracts for this year already surpass last year’s volume by two-fold.

“Mainly, we’ve been producing laptop motherboards in 2022. However, in 2023, we also manufactured intricate server motherboards and devices for telecommunications equipment,” said GS Group’s Vice President of Production Development, Fedor Boyarkov. A Kommersant source reported that domestic corporations majorly craft solutions with Intel and AMD chips.

Production Roadblocks

Similarly, Fplus, another electronics maker, is broadening its reach including motherboard production. The company plans to boost its output from “several tens of thousands to several hundreds of thousands.”

However, manufacturing electronics with modern post-sanction processors is hindered due to a lack of official documentation, according to Maxim Koposov, Director of “Promobit” (manufacturer of servers and Bitblaze storage systems). The documentation is critical to integrate a chip onto a board.

Koposov stated that some Russian companies are partnering with Chinese electronics developers to gain access to modern board design, developed with chip manufacturer support. “This lowers the extent of development localization in Russia, leading to technological backwardness”. Ivan Pokrovsky, the Executive Director of the Association of Electronics Developers and Manufacturers (ARED), confirms this trend. He noted that the absence of necessary processor documentation delays Russian tech development and necessitates additional costs.