Angstrom-T, a major Russian manufacturer of military-use chips, was declared bankrupt by a court decision on December 2, 2024, due to an inability to repay a $9.9 million debt. This development was reported by The Moscow Times and stems from ongoing financial difficulties and mounting debts. Angstrom-T was founded with the aim of producing competitive microchips for export and domestic markets, buoyed by government support. The company had received substantial financial backing, including $1 billion from the Russian government and an €815 million credit line from Vnesheconombank, intended to boost processor, smart card, and electronic passport manufacturing. Despite these efforts, Angstrom-T faced continuous financial challenges exacerbated by loan defaults.

The origins of Angstrom-T’s financial woes include significant sanctions imposed by the U.S., Canada, Japan, Switzerland, and Ukraine starting in 2022, due to its production of military navigation systems. The company’s financial instability led to Vnesheconombank seizing its assets and pushing for bankruptcy. The management was eventually transferred to Rostec, a state defense corporation, to maintain minimal production capacities and pursue import substitution. The Russian defense industry’s reliance on Western machinery for microelectronics

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