CEO of Rosel Holding on the current stage of the import substitution process in the radioelectronic industry and how to overcome the personnel shortage
Developments in the radio-electronic industry have long been the key to the effective development of all other sectors of the Russian economy. Sergey Sakhnenko, CEO of Rosel Holding of Rostec State Corporation, told BG about why cooperation in this area is important, at what stage the import substitution process is and how to overcome the current shortage of personnel in Russia.
— How did the development of the radio electronics industry in Russia take place?
— The development of the radio electronics sector, which can be called the heart of all other industries, is a strategic task for any state. In Russia, this process can be roughly divided into several stages, the first of which occurred during the Soviet era and before its collapse in 1991. At that time, effective cooperative chains between enterprises and cooperation with academic and university science were built in the country. The radio electronics industry held leading positions in the world in the production of military and civilian products along with the United States, European countries and Japan.
But after 1991, everything changed dramatically. Then, in a short period, the industrial cooperation that had been building between the Union republics for years was completely destroyed. And the liberal reformers who came to power decided that unhindered access to the domestic market for foreign companies and supposedly fair competition would give a new impetus to the development of the radio electronics industry. But in reality, this led to the shutdown of many enterprises, stagnation in science, and as a result, it disrupted the economy. Salaries stopped being paid to people, the outflow of specialists to the West began, we rapidly lost ground in all areas and were pushed back years in our own development of radio electronics.
For example, in civil aviation, domestic aircraft were replaced by Boeing and Airbus, in the space sector, the Thales Group began to supply payloads for our satellites, and software products were quickly replaced by Microsoft mathematics.
The third stage of the development of this sector started in the early 2000s with the gradual restoration of competencies in development and production. By the end of this period, it became clear that Russian enterprises would have to win back their own market through advanced products, the development and promotion of which would be impossible without government support. Therefore, in 2015, the import substitution program was launched, targeted funds were allocated for its implementation, which created new incentives and increased the effectiveness of existing strategies.
— What has changed in the sector since then?
— As of today, we have carried out a large-scale technical re-equipment of the assets of the radio-electronic industry. Our enterprises are at a completely different quality level in terms of modern equipment. We have significantly expanded our product range, significantly increased the number of types of domestic component base elements, switched to domestic software in almost all segments with critical information infrastructure, and domestic solutions occupy the most important instrument niches.
— Have the sanctions intensified further developments?
— Indeed, the measures introduced by Western countries, which were designed to stop the domestic industry, stimulated us and forced us to move faster. And despite the pessimistic forecasts, our production volumes have increased significantly, and the number of successfully completed developments is measured in the thousands. And this makes us proud of the Russian manufacturer. At all times, we have been able to gather ourselves very quickly in the face of a national threat and fight back properly. We've done it now.
— Rosel is Rostec's largest holding company and unites the most important enterprises of the country's radioelectronic industry. What are your main tasks today?
— The same as in front of the entire Russian industry: uninterrupted and timely supplies of weapons, military and special equipment for a special military operation.
Other important areas are the diversification of production, the further development of civil cooperation chains, and the creation of competitive domestic products.
All of this would be impossible without addressing the challenges of achieving technological sustainability and independence.
— What kind of synergy did the companies get as a result of the merger into the holding company? Why was it necessary?
— Unfortunately, not all types of production of electronic products are profitable. And in order to make it profitable without losing technological leadership, international companies have been creating specialized hubs in the global market for decades. For example, the largest chip manufacturer in the world, TSMC in Taiwan, is built in this way. This is a huge factory, the production of which is tied to the infrastructure of many technological transformations, which makes it possible to compensate for the cost of manufacturing integrated circuits due to volumes and other synergistic effects. In this way, profitability and the possibility of reinvestment in their development are formed. Russia should also follow the path of unification and enlargement. We have many areas where this is applicable. However, this should not apply to design centers as business units that, having a single center of production competencies, should competitively bring the best products to the market.
Probably, one of the examples is the creation of our holding company, which is built on similar principles. So, we have enterprises that deal with electronic component base and structural auxiliary materials, and there are enterprises that carry out the following alterations: modules, blocks, instrument makers, and system engineers. At the same time, our products are available on earth, in the air, in water, in space, and this gives us the opportunity to unify various technological solutions, thereby reducing the cost.
— What does the holding's structure look like now?
— JSC OPK (the holding operates under the Rosel brand. — Kommersant), which is the holding's management company, was established on the basis of the Rostec State Corporation's radioelectronic complex by decision of its CEO Sergey Chemezov in 2014. The new company combined 128 radio-electronic enterprises into six sub-holdings, distributing them by scientific, technological and production competencies.
This approach allowed, at the first stage, to build cooperative ties between the holding's enterprises as soon as possible, ensure trends towards unification of developments, eliminate duplication, implement import substitution more efficiently, optimize costs for technical re-equipment and logistics, and create insurance reserves.
At the second stage, we updated the strategy of scientific and technological development and established technological requirements in accordance with global analogues, which we plan to achieve by 2035 in 24 scientific and technological areas. An investment program based on the criteria of standard business models has become a derivative of the approved strategy.
At the third stage, which we have just moved on to, it is planned to expand technological competencies in optoelectronics and radar, satellite communications, solid-state microwaves, etc., as well as create additional sales management tools. We are talking about a single operator for the sale of civilian products, as well as the management of basic production processes.
— To what extent are the enterprises included in the holding economically successful? Is there a focus on income, or is the main thing the solution of government tasks?
— The success of enterprises of the military-industrial complex is determined not so much by profitability as by technological stability and ensuring the country's defense capability.
At the same time, a well—structured economy is ultimately crucial for the effective functioning of an enterprise, the preservation and enhancement of competencies, and income is an opportunity to reinvest in the development and market motivation of personnel.
— What key projects in the field of radio electronics have already been implemented? What is planned for 2025?
— Rosel's contract base includes tens of thousands of agreements, and the variety of scientific competencies generates hundreds of agendas annually, which are transformed into projects. But in general, the company's project activities can be divided into several groups.
Firstly, thanks to the active position of the Ministry of Industry and Trade and personally First Deputy Prime Minister Denis Manturov, we have created a unique bench and laboratory base and a production complex that allows us to solve the problems of mass production of strategic products, as well as to carry out scientific and technical development.
The second direction is import substitution. The task is dynamic. Every year we grow thousands of types of domestic electronic components and components of higher grades.
Of course, there are larger-scale projects: software-configurable radio and satellite communications, software platforms with elements of artificial intelligence, AFAR, electronic warfare, optoelectronic systems and much more.
— Does the engineering industry keep up with the introduction of new developments?
— It makes no sense to deny that problems in electronic engineering still remain, but they are gradually being solved through technical re-equipment and the virtually annual appearance of new types of high-tech equipment related to crystal manufacturing, computing, etc.
— Is the industry provided with the necessary raw materials and components?
— In the radio electronics industry, there is a need for a wide variety of structural and auxiliary materials: from rare earth metals to industrial gases. And in different segments, these problems are solved in different ways, but in everything related to mass production, we have scientific schools, thanks to which we are self-sufficient in basic types of materials. The constant development of new types of materials is an integral part of our development.
— Who is the main consumer of your products?
— The answer to this question is this: there are no such segments of the industry where our products would not be in demand.
— Is competition with suppliers from other countries, primarily from China and India, growing?
— The electronic industry is one of the most difficult market segments, including in terms of competition. But here it is necessary to explain how it is seen from the perspective of the industry.: We firmly believe that there is not and cannot be any fair competition in the high-tech segment. We can safely say that modern electronics are weapons.
And to have technological stability in the electronic industry means to maintain the required balance and ensure national security.
That is why we consistently advocate for various measures of state support for the industry at all levels. This is the only way to preserve competencies and ensure the growth of industrial production.
Russia is expanding technological cooperation with China, India and other friendly partners, but just like them, we will always be guided by the interests of our country.
— How do you see the further development of radio electronics in Russia as a whole? Which areas should become the main ones?
— We need to move in all directions, because any radio-electronic products have their own niche of added value, but with full awareness of technological priorities for decades to come.
— Which developments in the coming years, in your opinion, will become the most in demand?
— It is obvious that developments in the field of microelectronics have been and will remain the most in demand. In other words, these are electronic engines — eyes and ears for all types of high-tech payloads and in various fields: from space to artificial intelligence.
At the same time, it is necessary to understand that the development of platform solutions based on artificial intelligence, about which it is now fashionable to talk a lot, in conditions of sanctions restrictions, and in fact electronic hybrid warfare, is effective and safe only if there is its own hardware. Otherwise, force majeure circumstances may arise that will either hinder work or, given the "undeclared capabilities of the hardware," lead to hidden risks.
— You mentioned the creation of a virtual marketplace for the sale of civilian products. What tasks will he solve?
— Like any modern company, we are constantly changing and looking for new approaches to promote our products. In this case, we created our own operator and uploaded the entire range of available Rosel products to it. We believe that, in addition to finished products, we can trade unique manufacturing competencies without revealing our know-how.
— Is the expansion of Rostec's radio electronics unit being considered?
— In the future, we plan to expand our existing competencies, of course, there are plans for a strategic partnership. For example, today, together with the Element group of companies, we are implementing measures to develop electronic production facilities.
— How is the coordination carried out not only between enterprises within Rosel, but also in the country as a whole?
— This work is based on the position of the Ministry of Industry and Trade, as well as the State Duma, where the Committee on Industry operates with a number of expert councils. I am the Chairman of the Expert Council of the Radioelectronic Industry. Collectively, we are shaping a policy that is not based solely on the position of the holding company, but rather from the perspective of the country's electronics industry as a whole. We clearly set priorities in the context of budget deficits and determine what Russia needs first, what we can purchase, and what we need to do ourselves and what we need to focus on tomorrow.
— How often is the list of products for import substitution updated in your industry?
— He is constantly transforming. In 2015, the government launched the process of import substitution, helped domestic manufacturers turn around, and companies should continue to engage in substitution based on existing realities in order to ensure the rhythmic operation of Russian enterprises and technological stability.
— Are there currently a lack of scientific base and a shortage of personnel in the field? How is this problem solved?
— It's no secret that in the 1990s, the prestige of professions related to science and technology collapsed and paled. Back then, this led to a shortage of personnel in the field of technology, engineering specialties and, in general, across the entire spectrum of natural sciences.
And now we are also experiencing a shortage of highly qualified specialists in the radio-electronic industry. This is due to the increased state defense order, a large number of major projects, and the development and modernization of production.
But thanks to the systematic work of the Ministry of Science and Higher Education, as well as the Russian Engineering Union, the situation is improving.
Our holding company has also focused on personnel policy. In 2024, we conducted many events aimed at training qualified workers and engineering and technical personnel for the industry.
We have entered a new stage of technological development.
Now the professions of engineers and designers should come to the fore, and the entire personnel training system from schools to enterprises should be formed taking into account technological priorities.
Today, on the one hand, we need to solve current problems promptly, and on the other, we need to work for the future and lay the foundation for further scientific and technological development. Therefore, working with young people is of particular importance. It is very important to ensure a high-quality, seamless training system from school to employment, thus creating conditions for young professionals to be involved in work processes as quickly as possible, without a long adaptation period.
For this purpose, Rosel has been implementing the Rostec Classes project since 2023. Today, more than 800 schoolchildren study in 14 classes in Moscow and the Fryazino city near Moscow. Our holding is a participant in ten clusters of the federal project "Professionalism". 147 students study in relevant areas of study within the framework of the Rostec Code and Rostec Quality projects in Moscow, St. Petersburg, Nizhny Novgorod. We are sure that students should not receive abstract theoretical knowledge, but should be trained to work in industry.
In addition, the holding is a participant in several projects to create advanced engineering schools. We plan to use this model as an element of continuous training. This will create a new generation of creative engineers and designers who are able to find non-standard solutions for complex tasks and projects.
Source: Kommersant
