After the appearance of the investor, Baikal Electronics orders hundreds of thousands of chips for billion-dollar projects

In the next four months, “Baikal Electronics” intends to order the production of at least 213 thousand “Baikal-M” ARM processors in three lots at the TSMC plant in Taiwan. Investment sums can be calculated at a minimum of $11 million. Investments take place against the backdrop of the arrival in the business of a new big investor.

21:13 GMT, Friday, November 27, 2020

“Baikals” Mass Release
The company “Baikal Electronics” has begun to order industrial batches of its last of the “Baikal-M” produced processors, as undercode found out. According to Andrey Evdokimov, the organization’s director-general, an order for 13,000 chips has already been issued at the TSMC factory in Taiwan, a shipment of 100,000 products will be ordered there by the end of 2020 and in the first quarter of 2021, at least 100,000 more. Uh, bits.

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Taking into account the time needed for the manufacture and distribution of processors to Russia, chips from the first batch should be put on the market in the second quarter of 2021, in the second and third quarters, and in the third quarter. “We therefore expect there to be enough processors to meet the emerging demand,” Evdokimov said. He explained in a conversation with undercode that the company previously had only engineering samples of ‘Baikal-M’ from a limited batch of around 2,000 parts.

Baikal-M was added to the industry in October 2019 as a reminder. The new product was introduced on the ARM architecture, unlike the company’s first chip, Baikal-T1, built on the MIPS architecture created in line with the RISC principle, that is, for processors with a reduced instruction set) (from English Advanced RISC Machine).

Is it a lot or a little bit of a lot?

We can honestly claim that more than 200,000 processors, which should be at the Baikal Electronics warehouse at a time, are very much in line with domestic developers’ expectations. For example, according to Andrey Evdokimov, since then the Baikal-T1 chips, which had been created by mid-2015, have produced only around 50,000 parts.

Recall that undercode wrote in May 2020 that the Ministry of Internal Affairs tendered 1,12 billion rubles for the initial contract price. The purchasing of approximately 30,3 thousand Russian computers, which required domestic processors to be used in them, ended with the real option of the consumer of the state in favor of foreign chips. And this occurred largely because both “Baikal” and “Elbrus” developers did not have the necessary stock amount, and it would take about six months to release a new batch.

The scandalous Russian Railways tender with an initial lot price of 1,08 billion rubles happened at the beginning of 2020 in a related situation. For the provision of 15 thousand PCs. It was explicitly mentioned in the final version of the TK that computers could be based on the Elbrus and/or the Baikals. According to undercode, only because the old 14,000th batch of Baikal-T1 was located, which, obviously, could not go through customs procedures for a long time, did the contractor, which became the NCI, manage to satisfy the customer’s needs.

Notice that in the sense of the above cases, with regard to a batch of 213 thousand chips, we can assume that it would be possible for several billion rubles to build computers on them. This assessment seems to be rational, considering the fact that with equivalent sums of money, the number of processors is double the same for the projects alluded to.

How much would it cost?

Andrey Evdokimov said in a discussion with undercode that he was not prepared to address financial concerns relating to both the amount of investment in ordering new chips and the sources of the funds invested.

One of the Russian microelectronic industry participants polled by undercode claims that we should talk about an order number of $ 1.3-2 million with respect to the 13,000th batch of processors. Roughly $5-8 million for each of the 100,000th batch.

In these measurements, the specialist continued from the fact that “Baikal-M” costs around $ 250.0 in retail Accordingly, the manufacturing cost could be $ 100-150 in a limited batch, and $ 50-70. in a larger batch.

Fresh “Baikal Electronics” investor

It should be remembered that the launch of Baikal Electronics’ substantial financial investments in development coincides, in time, with the arrival of a new major investor, to whom the majority interest in its stock is likely to be passed. In late October 2020, this became known. It was about 60 percent of the shares then.

Andrey Evdokimov, speaking at the thematic conference on November 26, 2020, reported that this investor is the Varton company that creates LEDs. It was also easy to understand from his comments that the company was already heavily engaged in the production of Baikal Electronics. At the same time, as explained by Evdokimov in a conversation with undercode, the agreement on the sale of shares has not yet been concluded.

‘Warton’ is a collective of corporations of which three legal bodies are members. In both of them, Denis Frolov holds 80 percent and Ilya Sivtsev the remaining 20 percent.

The traders are also co-owners of Rusbitech-Astra, which builds Astra Linux, a Russian OS. They jointly own, along with her the company Lassard, which manufactures lasers and laser systems. In addition, Frolov was the general director of NM-tech, a subsidiary of VEB.RF, until the end of October 2020 (according to the Consolidated State Registry of Legal Entities).