Russia’s leading electronics holding, “Element,” has acquired intellectual property rights for Chinese technological developments, as reported by CNews. Financial records indicate that its subsidiary, “Element-Technologies,” signed two agreements with the Chinese firm Shijiazhuang Tonhe Electronics to purchase rights to intellectual designs.
Deal Details:
- Financial Terms: Advance payments for the two contracts totaled 99.4 million rubles.
- Subject of Licensing: Intellectual property rights related to power modules.
- Technical Specifications: Market sources specify that the deal focuses on 30 kW and 40 kW power modules, which are industry-standard components for fast-charging stations for electric vehicles (EVs).
- Timeline: The rights are scheduled to be transferred during the first half of 2026.
The Chinese partner, Shijiazhuang Tonhe Electronics, specializes in high-frequency power supplies for not only the civil sector (EV charging) but also the defense and aerospace industries.
Analytical Summary:
The deal between “Element” and Tonhe Electronics is a prime example of the Russian microelectronics sector shifting from “import substitution” to “import transition.” Instead of developing original architectures from scratch, market leaders are pivoting toward licensing Chinese technology to quickly plug gaps in critical niches.
However, this case highlights two systemic issues. First, dependence on China is becoming absolute: Russia is no longer just buying hardware; it is buying Chinese engineering IP, which may solidify a long-term technological lag behind global leaders. Second, the choice to buy a license rather than develop an in-house solution confirms that Russian R&D centers are either overwhelmed or lack the specific competencies to create competitive power modules under current time constraints. For “Element,” this is a pragmatic way to enter the market with a “domestic” product that essentially possesses a “Chinese heart.”