Semiconductors in BRICS countries: why chips serve as “oil of 21st century”

Technological sovereignty is part of the practical BRICS agenda. The focus is on creating a new digital space where technologies serve as a key instrument of development. Semiconductors play a particularly important role in this context.

Chips and their importance for BRICS

Semiconductor chips are the foundation of modern technological civilisation. Practically no electronic device on the planet can function without them. In electronics, semiconductors act as a kind of brain, controlling electric flows, amplifying signals and supporting computational processes. Chips are everywhere – from mobile phones and automobiles to medical equipment.

“Chips enable the operation of critically important sectors such as artificial intelligence, 5G telecommunications, electric vehicles, fintech, defence systems, the aerospace industry and smart manufacturing. Without semiconductors, digital transformation and industrial modernisation are impossible,” emphasises Alexander Titov, Deputy Secretary General of the International Association of Digital Economies, in an exclusive interview with TV BRICS.

Today, technological and economic development is inconceivable without semiconductors – and the same goes for sovereignty. This is why, in recent years, the competition for control over this vital technology has intensified. Experts note that in this race, strategic partnerships are increasingly significant, and BRICS is helping to form them.

“In recent years, BRICS member countries, recognising the key role of semiconductors in industrial and technological development, have taken practical steps to ensure sustainable access to these resources. What is notable in this process is the shift from dependence to collective self-reliance,” says Abed Amiri, an expert in economic and technological cooperation within BRICS, digital transformation and the use of AI in business, in an exclusive interview with TV BRICS.

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Potentials of BRICS countries

China has made self-sufficiency in semiconductors a national priority. Large investments are directed towards AI and the automotive sector, which in turn requires investment in semiconductors.

“China operates a major industry support fund. Its third phase began in 2024, with funding estimated at approximately US$40 billion,” notes IT and business expert and founder of a major Russian business network for expert content, Semyon Tenyaev.

According to Nikkei, China plans to increase the production of relatively advanced microchips, including 7-nanometre and possibly 5-nanometre processes, to 100,000 wafers within one to two years, compared with the current 20,000. Experts emphasise that China’s leadership in 7 nm technology is particularly significant. The 7-nm process allows for smaller transistors, increasing quality per unit area – a key measure of performance.

Experts describe China as the undisputed leader of the group, already approaching 70 per cent chip self-sufficiency by 2030.

India, according to Alexander Titov, is also a strategically important technological partner. The country provides around 20 per cent of the global talent pool in semiconductor design and is currently investing US$10 billion in the implementation of the 2021 strategic government initiative, the India Semiconductor Mission (ISM). Its goal is to develop a domestic ecosystem for semiconductor and display production, as well as chip design capabilities.

Malaysia, a BRICS partner country, has long established itself in the semiconductor industry, providing 13 per cent of global assembly, testing and packaging operations for chips. The country ranks sixth globally in semiconductor exports. Major chip production facilities in Malaysia manufacture a wide range of products, including processors for computers and mobile devices, graphics chips, memory chips, and other components. Domestic technological competencies, such as LED chip production, are also actively developing.

In May 2024, the Malaysian government announced an allocation of at least US$5.3 billion for financial support and training of 60,000 engineers to implement the National Semiconductor Strategy (NSS). The plan aims to improve existing infrastructure, develop an advanced chip supply chain, and attract leading global clients.

Russia, in turn, has experience producing 28-nanometre nodes. In the rapid race for nanometres, where 3 nm and 2 nm processes make global headlines, the 28-nanometre node may seem outdated. Yet this standard is not only still relevant but also experiencing a renaissance. It is widely used in automotive electronics, telecommunications, industrial control systems, and household appliances. Thanks to its balance of high performance and low power consumption, the 28 nm process remains a reliable and in-demand workhorse of modern electronics, without which the world would face an even greater chip shortage.

Brazil is also developing its semiconductor industry. The country has revived its only domestic chip production facility, while the Ministry of Science, Technology and Innovation of Brazil is working on the development of rare-earth metal extraction needed for semiconductor manufacturing. Brazil ranks second in the world in these reserves, after China.

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BRICS cooperation in semiconductors

At the end of 2025, Brazil and Malaysia announced the creation of a joint venture for chip production. Luciana Santos, Brazilian Minister of Science, Technology and Innovation, confirmed to  Brasil de Fato, a partner of TV BRICS. The enterprise will focus on producing microchips for electric vehicles and equipment supporting the transition to clean energy. Given Malaysia’s experience and Brazil’s resources, the partnership is considered highly promising.

Strategic partnerships are increasingly important, notes Alexander Titov. He believes BRICS cooperation mechanisms can support industrial financing. The group openly aims to develop its own infrastructure solutions.

For example, the New Development Bank launched a Digital Sovereignty Foundation with US$5 billion to support data centres, edge infrastructure and, importantly, semiconductor production within member countries, according to IOL. Experts say this demonstrates a serious determination to reduce dependence on traditional markets and create a resilient supply network within the group, where joint dialogues, initiatives, and complementary potentials already exist.

“What distinguishes BRICS is the presence of complementary potentials among members. On one hand, China with its leadership in 7-nm technology drives the movement. On the other hand, India with its US$10 billion investment, Russia with its 28-nanometre experience, and Brazil with the world’s second-largest rare-earth reserves complete the chain,” says Abed Amiri in an interview with TV BRICS.

Challenges and their consequences

Despite resources and potential, BRICS countries face numerous challenges in mastering semiconductor technology. The most critical is restricted access to advanced lithography equipment. Lithography machines – essential and highly complex tools in modern semiconductor manufacturing – pattern microscopic structures on silicon wafers that become transistors. Currently, experts note, lithography equipment is exclusively controlled by a few countries, such as the Netherlands and Japan. Without it, advanced chip production is virtually impossible.

Analysts also point to difficulties in accessing software, which slows domestic chip development. High capital intensity and technological dependency further reduce the pace of technological advancement.

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Ways to overcome

Experts argue that BRICS countries need collective cooperation and joint investment in semiconductor infrastructure, which is already underway.

“Despite geopolitical, financial, and technological constraints, BRICS countries increasingly employ industrial policy, diversification strategies and international partnerships to secure semiconductor access and strengthen economic sovereignty,” says Alexander Titov.

The Digital Sovereignty Fund, with US$5 billion in capital, is a first step in consolidating efforts. Experts note that the complementary capabilities of member states can form the basis of an independent supply chain, where each country plays a distinctive role: China in advanced production, India in design, Russia in strategic applications, and Brazil in raw material supply.

“Undoubtedly, the future of global technology will be defined not by a single monopoly but by competition and cooperation between parallel ecosystems. By investing in their strengths and enhancing coordination, BRICS countries can play a decisive role in shaping this new order,” concludes Abed Amiri.

The article was prepared by Svetlana Khristoforova.