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Five years ago, Element Group united the country’s leading microelectronics players into an end-to-end vertically integrated holding company. Representing more than 50% of Russia’s electronic components production, we are the largest microelectronics manufacturer in the country.

Element Group products are used in Mir bank cards, transportation tickets, and Troika smart cards. Our components find applications in urban infrastructure, communication, and satellite navigation systems. They help track vehicles via ERA-GLONASS and are used in control systems in transportation, industrial robotics, healthcare, and other sectors.

Kept analysts expect the Russian electronics market to continue growing at an average annual rate of 15% in the next six years. And the growth rate of the domestic electronic components production will be twice as much as the market average. Consequently, in the next few years, demand for Russian products will be driven by the import substitution and localization trends in the key end-user industries.

Another factor is the growing number of end-user industries, which will include computing infrastructure and telecommunication, among others. Our growth strategy is based on maintaining leadership in electronic components, our key segment, and increasing the revenue share of the blocks and modules, and precision engineering segments.

Most people generally believe that a breakthrough in technology and lower nanometers are equivalent. Its true when it comes to modern computing equipment, smartphones or ultra-thin computers. High performance, functionality and lower weight are largely due to advanced microelectronic components.

In a meantime, in our regular life we normally deal with products such as electric vehicles, high-speed rail transport, renewable energy, industrial devices, etc, where lower nanometers can be absolutely ineffective. These technologies (65 nm and larger) are called “mature”, and they account for about 30% of the global microelectronics market.

In the next few years, we plan to focus on “mature” feature sizes (65 nm and larger). These are in great demand due to the rapid advancement of new mass-market segments such as electric vehicles, charging infrastructure, renewable energy, and aircraft engineering. Our number one priority today is to meet the market’s needs in Russia and friendly countries by manufacturing microelectronic products which we can control in terms of equipment, technology, and materials. At the design level, we have been building up competencies in developing products as small as 22 nm.