Loading the section
Element is the largest Russian group in microelectronics: it manufactures integrated circuits, semiconductor devices and electronic modules. Its products go to industry, transport, telecommunications and government systems. The shares trade on the Moscow Exchange under the ticker ELMT.
Microelectronics is the most capital-intensive branch of manufacturing. A chip fabrication plant costs more than entire enterprises in other industries, and the equipment for it is made by only a handful of companies in the world. That is why entry into the industry is almost closed, and an operating production facility is valuable in its own right.
Russian conditions add a sanctions dimension to this: supplies of lithography and other equipment are restricted, and progress in technological level is held back not by money but by the availability of machines.
Demand, meanwhile, is assured: requirements to use domestically produced electronic components in government and critical systems leave the customer obliged rather than free to choose.
Integrated circuits for industrial and special-purpose equipment.
Discrete components and power electronics.
Finished electronic units, including those for transport and telecommunications.
Strengths and weaknesses describe the business itself. Opportunities and threats describe what may happen around it.
It manufactures integrated circuits, semiconductor devices and electronic modules for industry, transport, telecommunications and government systems.
Because a chip fabrication plant requires clean rooms and equipment that only a few companies in the world produce. The cost of such a line is comparable to the cost of entire enterprises in other industries, and it becomes obsolete within a few years.
They are the integrated circuits and other elements from which any electronic product is assembled. In government and critical systems their origin matters for security, which is why separate requirements apply to domestically produced components.