Russia sees tech boom amid sanctions — microelectronics industry sees massive hiring surge and increased salaries

Despite sanctions, Russian electronics and computer hardware manufacturers expanded their workforce in 2024 by an average of 13%, reports Vedomosti, Russia's largest and most well-known business publication.

Engineers were the most sought-after professionals, which indicates that companies in the country that start wars are adapting to sanctions and developing various workaround ways to keep Russia's economy (and the war machine) going. Perhaps more importantly, Russia's Mikron, the leading chipmaker in the country, is hiring R&D personnel, which may lead to breakthroughs.

R&D staff expansion

According to the report, Element Group, Aquarius, RDV Technology, Rikor, and Graviton led the growth, with some firms increasing staff by over 30%. Alongside workforce expansion, engineers' salaries rose significantly, and the highest increases were in R&D roles. The industry also faced labor shortages, prompting companies to invest in training programs and student internships. Moreover, trends indicate continued growth into 2025, with companies planning further hiring and expansion.

• Element Group, which happens to own Mikron, Russia's most advanced chipmaker, grew to 9,500 employees, with engineers making up 42% of the workforce after a 9% increase in their numbers in 2024.
• Graviton, a Russian server maker, tripled its R&D staff to more than 150 specialists, focusing on electronic modules and software development.
• RDV Technology, a PC and equipment maker (it bills itself as "one of the leading manufacturers of computer equipment in Russia"), doubled its workforce to 200, with engineers accounting for over 20% of employees. The company launched two new assembly lines and expanded its product lineup, introducing Altai and Caucasus servers.
• Aquarius, a Russian PC and server maker, also saw an increase in technical hires, with specialists in radio electronics comprising 16.3% of staff.
• Rikor Group, a contract maker of pretty much everything based on printed circuit boards (PCBs), expanded by 15%, reaching 1,200 employees, mainly due to production growth.

According to Vedomosti, production ramp-ups led to peak workloads, particularly in late 2024. RDV Technology saw a 3.6-fold increase in output in December compared to monthly averages, requiring additional labor. To meet urgent orders, the company enlisted students from technical colleges. The high demand for electronics contributed to the growing need for skilled workers across multiple firms.

Salaries peaking

Salary growth followed workforce expansion. At Element Group, engineers’ wages increased by 20% to 126,000 rubles. RDV Technology and Rikor saw salaries rise by 18% and 25%, respectively. Aquarius raised wages by 20% in production and 27% in R&D. Azimut, a Rostec subsidiary, increased average salaries by a third. Median earnings for electronics engineers grew by 15% in the Moscow region (115,000 rubles, $1,280), 22% in St. Petersburg (110,000 rubles, $1,220), and 20% in Kazan (90,000 rubles, $1,000).

Still, this is a far cry from what software developers make in the three biggest cities of Russia. Java programmers in Moscow saw a 7% salary increase to 320,000 rubles ($3,560), while those in St. Petersburg and Kazan earned 8% (270,000 rubles, $3,000) and 4% (240,000 rubles, $2,670) more, respectively, based on SuperJob data.

There is a trend

A key trend observed by the Vedomosti journalists is the movement of IT specialists into electronics in general and microelectronics in particular, as their skills prove valuable in hardware development. Of course, a problem will occur when software developers are needed to support that hardware, but it seems that for now, nobody cares.

In 2025, industry growth is expected to continue. On average, companies plan an 8% increase in headcount, with 30% of companies anticipating a workforce expansion of over 20%, according to Vedomosti. Element Group aims to reach 10,000 employees, focusing on engineers and R&D professionals. Rikor also projects a 15% increase in staff.

There is a major catch. Where will the staff who have relocated to other countries due to the war against Ukraine, in particular, and general disagreements with the regime be? To address labor shortages, GS Group suggests expanding education in radio electronics, increasing state-funded university spots, and offering production internships with employment opportunities. Amid competition for talent, firms are increasing salaries and providing additional benefits to attract skilled workers.