Russia's OMK Seeks Stakes in Chinese Chip Factories to Secure Production Access

Russia's Unified Microelectronics Company (OMK), a state-controlled entity formed in January 2026, is considering acquiring minority stakes in smaller Chinese semiconductor manufacturing facilities to secure reliable access to advanced chip production. Russian domestic semiconductor plants currently operate at a maximum process node of 90 nanometers (from 2003 technology), far behind global leaders. Taiwan's TSMC and South Korea's Samsung, which previously served Russian clients, ceased operations with Russia in March 2022 following international sanctions. Chinese foundries have advanced to 5–7 nanometer nodes and are approaching 2 nanometer technology, making them a viable alternative.

According to sources familiar with OMK's strategy, the company plans to acquire stakes in "small and non-prestigious" Chinese factories rather than major semiconductor manufacturers. The arrangement would allow dedicated production lines to serve Russian customers. Legal experts note that while shareholding status simplifies quota allocation and price certainty, it does not automatically grant access to patents, technical documentation, or proprietary know-how without separate agreements. Chinese factories generally permit foreign investment but may reject partnerships involving state-connected entities or sanctioned organizations.

OMK was established to consolidate domestic microelectronic resources and create an integrated full-cycle production complex. The Russian government plans to invest 750 billion rubles through 2030, with Sberbank contributing an additional 250 billion rubles. Experts identify the primary benefit of acquiring Chinese factory stakes as securing a guaranteed position in production queues and negotiating transparent pricing. Russian semiconductor designers such as Baikal Electronics, Module, and Elvis already manufacture chips in China under existing arrangements. Analysts caution that shareholding alone does not guarantee technology transfer or management control; achieving meaningful influence typically requires stakes exceeding 25 percent (blocking stake) or 50 percent plus one share (control). Current geopolitical conditions make Chinese authorities unlikely to cede management control to foreign, particularly state-backed, investors.