Closed-loop electronics manufacturing: When does the impossible become possible?

10.09.2026, Moscow.

Complete localization of electronics manufacturing is a strategic task for ensuring Russia’s security, the solution to which will also create conditions for the long-term development of businesses such as DNS Group, Rossa Primavera News Agency‘s IT Desk notes.

On September 3, Dmitry Alekseyev, DNS Group CEO, said in an interview with RBK that completely closed-loop electronics manufacturing is “impossible” because of its high cost. At the same time, he emphasized that in a world which, in his view, has not ceased to be global, non-market (that is, military) methods are being used to compete with rivals.

“Because we can still see that, despite what is happening in the world, the world has not ceased to be global. Perhaps competition for certain parts of this global pie has intensified in some areas, and various non-market methods are being used,” Alekseyev said.

In addition to the unprecedented anti-Russian sanctions and the sabotage of the Nord Stream gas pipeline, a vivid example of “non-market methods” is the strikes by enemy missiles and drones against the warehouses of the Ozon and Wildberries retail networks and other non-military infrastructure in the Russian rear. These strikes are carried out by the Kiev regime, which receives technologies for producing weapons and technological support, including space-based reconnaissance and targeting capabilities, from the United States and others, against the backdrop of Washington’s conspicuous peacekeeping efforts.

Russia’s problem is not that communist globalization has come to the world, that humanity has begun living as one big family, that wars have become a thing of the past, while Russia, instead of cooperating with other countries and peoples, decided to wall itself off from everyone and do everything on its own. The problem is that non-communist globalization is failing, confrontation is intensifying, and security issues are coming to the forefront.

Under these conditions, the possibility of cooperating with anyone, for example, importing inexpensive smartphones for the domestic market, is beginning to depend directly on the ability to ensure the security of logistics, warehouses, and distribution outlets on one’s own territory. And that is already a non-market task.

Complete localization of electronics manufacturing for the sake of competing with foreign manufacturers is a market task which, as the head of DNS Group rightly noted, has no market-based solution.

Complete localization of electronics manufacturing in order to achieve independence for Russia’s technological base and develop the country’s domestic scientific and industrial potential with the aim of ensuring maximum national security is a non-market task. In other words, it can be addressed primarily through non-market methods.

There are successful examples and approaches to solving similar and even larger-scale tasks in both Russian and foreign history. Examples include the Soviet atomic project, the “Russian miracle” of industrialization, and Franklin Roosevelt’s “New Deal” to overcome the Great Depression in the United States.

Solving the task of fully localizing electronics manufacturing would make it possible both to harness Russia’s considerable potential in IT technologies, which Alekseyev mentioned in his interview, and, over the long term, to create new technological opportunities for the country’s and businesses’ development in addition to addressing security challenges.

Source: Rossa Primavera News Agency