Element to Build 55-40nm Chip Plant Near Innopolis with Plans for 28nm Transition

Russian holding Element is preparing to build a chip production plant for 55-40 nm topology near Innopolis in the Republic of Tatarstan, with the prospect of subsequently transitioning to a finer 28 nm process. The site for the enterprise has already been identified, and the holding is receiving technologies for production launch from partners in China — so-called technology donors.

Where the plant will be built and what will be produced there

The site for the new plant has been chosen near Innopolis — a specially created technology city in Tatarstan that has been developing since 2012 as a center of attraction for IT and electronics industry. Proximity to Innopolis provides the project with access to the personnel base of local universities and IT companies, as well as to the already established infrastructure of technology parks.

The starting production topology is 55-40 nm. These are so-called mature technological standards: by world standards they have long ceased to be cutting-edge, but remain the workhorse for a huge number of practical applications — from automotive electronics and industrial controllers to chips for bank and SIM cards. These standards have sustained a significant portion of the global semiconductor market for decades, and they are the easiest to localize without the most expensive lithographic equipment.

Why the transition to 28 nm is an important milestone

The stated goal — transition to 28 nm — is far more ambitious. This is no longer a mature, but a fully modern process by mass standards: chips at this level are used in network equipment, next-generation automotive electronics, industrial Internet of Things and numerous other devices where the most advanced standards in 3-5 nm are not needed, but significantly greater computing density is required than those provided by 40 nm and above.

For Russian microelectronics, this is a significant step. Since 2022, the country has been cut off from supplies of advanced lithographic equipment from Western manufacturers — primarily the Dutch ASML, whose machines remain the world standard for producing modern chips. Under these conditions, the expansion of available technological standards within the country depends directly on partners willing to share equipment and know-how in circumventing sanctions restrictions — hence the mention of technology donors from China.

• The plant will be located near Innopolis — a technology city in Tatarstan that has been developing since 2012
• Starting production topology — 55-40 nm, with prospect of transition to 28 nm
• The holding receives technologies and equipment for the project from partners in China
• Element is Russia's largest microelectronics holding, a joint venture between state corporation Rostec and A1 Capital Partners

How this relates to the current level of the industry

Today, the main capacity of Russian microelectronics is concentrated at the Mikron plant in Zelenograd, where serial production takes place at significantly coarser standards — from 90 nm and above. The Element project in Tatarstan, if implemented according to stated parameters, will be a significant upgrade for the industry: the transition directly to 40-nanometer, and then to 28-nanometer level will narrow the gap between what Russia is capable of producing within the country and what civilian and industrial electronics actually require.

The Element holding itself was created in 2019 as a joint venture of Rostec and A1 Capital Partners and consolidated the assets of dozens of specialized enterprises — from chip developers to manufacturers of electronic components for the banking sector, transportation and telecommunications. The new plant near Innopolis should become one of the key production facilities of the holding alongside already operating enterprises.

What this means

The new plant is part of a broader strategy of Russian industry toward technological sovereignty in microelectronics: without its own production of chips even at the basic level, the country remains dependent on imports in critical sectors — from bank cards to automotive and industrial electronics. The transition, even to 28 nm while relying on Chinese technologies, will not bring Russia closer to the leading edge of the semiconductor race, where Taiwan and South Korea operate at standards many times finer, but is capable of covering a significant portion of domestic demand for mid-class chips without regard for sanctions.