Kurchatov Institute Fined for Disrupting Import Substitution of Intel and Broadcom Chips

The Ministry of Industry and Trade fined the Research Center 110 million rubles

The Russian Ministry of Industry and Trade imposed a fine of 110.4 million rubles on the Research Institute of System Studies of the Russian Academy of Sciences (NIISI, part of the Kurchatov Institute). The reason was the violation of deadlines for fulfilling a contract for the development of specialized microchips.

Engineers were supposed to create domestic analogues of chips from foreign manufacturers, including Intel, Broadcom, Marvell, and Renesas.

The development was intended for high-speed data transmission interfaces and information storage systems used in critical infrastructure.

The contract, worth 544.6 million rubles, was concluded in November 2017. The work was planned to be completed by November 2019, but the actual delivery took place only in August 2020 — with a delay of 285 days.

According to the documentation, within the framework of the R&D, two types of microchips were planned to be created — a RapidIO high-speed interface router and a large-capacity RAID array controller.

By the end of 2027, a new plant for electronic products for the defense industry will be launched in the Urals. Presumably, it will start producing chips for S-500 "Prometey" radar stations, Su-57, and other military equipment.

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