Signing of investment agreement to launch 90 nanometre microchip production project

October 9, 2009

JSC SITRONICS, a leading provider of telecommunications, information technology and microelectronic solutions in Russia and the CIS, with a growing presence in other EEMEA emerging markets, announced that it today signed the investment agreement to launch full-scale 90 nanometre microchip production in cooperation with the Russian Corporation of Nanotechnologies («RUSNANO»), Sistema and «NIIME and Mikron», which is part of the SITRONICS Microelectronics business division. The signing ceremony took place during a visit by Prime Minister Vladimir Putin to the «NIIME and Mikron» facility in Zelenograd, Russia.

The total investment in the project is expected to amount to RUR 16.5 billion, of which RUSNANO will invest RUR 6.5 billion. SITRONICS will invest an equal amount in the form of the hi-tech equipment to be provided by «NIIME and Mikron». In a long-term perspective, the project will also involve debt financing. The investments will be made in the form of contributions to the charter capital of the joint venture between RUSNANO and «NIIME and Mikron».

The new facilities will be built on the basis of the existing «NIIME and Mikron» facilities in Zelenograd and will include research and design centers and microelectronic production capacity. STMicroelectronics, one of the world’s leading developers of semiconductor solutions and a long-term partner of SITRONICS, is the technology partner for the project.

The range of products to be produced at the facility will target a number of developing industrial sectors including Digital TV, GLONASS/ GPS navigation systems, industrial automation systems, automative electronics and high security smart cards.

Anatoly Chubais, Chief Executive Officer of RUSNANO, commented: «The launch of the 90 nanometre microchip production project is of considerable strategic importance for Russia. Nanoelectronic production in Russia plays an invaluable role in the development of the Russian high-tech sector and the country’s overall technological security.»

Gennady Krasnikov, General Director of «NIIME and Mikron», added: «Each new generation of technology enhances chip performance and reduces power consumption levels. The introduction of the 90 nanometre microchip technology will enable us to enter new markets while maintaining market leading positions for our 180 nanometre products».