Russia’s Largest Chip Maker Posts 98% Profit Collapse
Russian microelectronics manufacturer Angstrem saw its profit from sales collapse nearly 50-fold in 2025 as mounting liabilities and restructuring costs deepened the financial troubles of one of Russia’s key defense-sector chipmakers.
The Zelenograd-based company reported profit from sales of 16.5 million rubles ($224,400) for 2025, down from 846.2 million rubles ($11.5 million) a year earlier, according to the company’s financial statements. Angstrem posted a net loss of 206.8 million rubles ($2.8 million) on revenue of 4.1 billion rubles ($55.8 million).
Russia’s domestic microelectronics industry faces ongoing difficulties as Western sanctions and years of failed investment projects weigh on companies deemed strategically important for the country’s military-industrial complex.
Angstrem remains a key supplier of microelectronics for the Defense Ministry, state corporations and defense-sector manufacturers. Its shareholders include Element Group, RT-Capital and entities linked to Ruselectronics.
The company said the main reason for the negative financial result was additional liabilities of around 290 million rubles ($3.9 million) owed to Russia’s Deposit Insurance Agency in connection with failed lender BFG-Credit Bank. Those obligations accounted for most of the net loss.
Authorities approved an external rescue plan for Angstrem in February as part of bankruptcy proceedings tied to the company’s massive debt burden.
The plan, approved by an arbitration court, envisages financial rehabilitation over the next 18 months through cost optimization, the closure of unprofitable production lines and the sale of non-core assets.
Angstrem’s biggest challenge remains its debt to state development corporation VEB.RF. The company still carries liabilities of 236.3 billion rubles ($3.21 billion) on its balance sheet.
The debt stems from a loan agreement dating back to 2008, when structures linked to former Communications and Press Minister Leonid Reiman controlled the company.
Angstrem acted as guarantor for an 815 million euro loan raised to build a semiconductor manufacturing facility intended to produce processors, smart cards and electronic passports using 0.11-0.13 micron technology.
The project ultimately failed, with total claims swelling to 1.3 billion euros. The debt burden made Angstrem Russia’s most loss-making company in 2025 according to Forbes Russia. In 2024, the company posted a record net loss of 236.3 billion rubles ($3.21 billion), 47 times larger than its annual revenue.
The company is expected to undergo further restructuring over the coming year.
Read this article in Russian at The Moscow Times' Russian service.
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