Vades Group and Infineon Building $15 Million Microprocessor Plant in Uzbekistan to Cut Imports and Boost Exports

A major project to establish an enterprise for the production of microprocessor modules, with a total cost of $15 million, is underway in the Akhangaran district of the Tashkent region. This strategic initiative, undertaken by Vades Group in partnership with German technology giant Infineon Technologies, aims to strengthen Uzbekistan’s technological sovereignty and position the country in the international electronics market. The collaboration is a key part of seven investment projects worth a total of 78.3 million euros agreed upon during the Uzbek-German business forum.

Investment and Construction Progress

The project is being developed on the grounds of the Eltech Industrial technopark, a special zone created to foster high-tech electrical equipment production. Currently, 15% of the work on the second phase of construction has been completed, and the investment utilized has already reached $7 million. The production facility will cover an area of 4 hectares and, once operational, will provide about 100 new jobs, contributing to the region’s development. The first phase of production is slated to begin in early 2024.

Import Substitution Strategy

The localization of production is a direct response to growing import dependency. In 2025, Uzbekistan purchased SIM cards and microprocessor modules worth $35 million. Once fully operational, the new plant is expected to provide import substitution valued at approximately $5 million annually, covering a significant portion of domestic demand. This aligns with Uzbekistan’s broader “Strategy-2030,” which aims to increase the share of industrial-technological products and double labor productivity in the processing industry.

Export Ambitions and Regional Leadership

The enterprise has a significant annual export potential estimated at $6 million. Plans include supplying products not only to neighboring countries like Kazakhstan, Tajikistan, and Kyrgyzstan but also to more distant markets, including Mozambique and Cambodia. The project’s management expects the plant to become one of the top three largest producers in the CIS by production scale, marking a serious bid for industry leadership. The new facility will initially produce microchips for ID-cards, banking cards, and SIM cards, with future plans to manufacture components for home appliances and automobiles.

A Look into the Future

The creation of such a high-tech manufacturing facility in partnership with a global leader like Infineon-one of the world’s top ten semiconductor suppliers-is a landmark event for Uzbekistan. It will not only reduce reliance on imported critical components but also set a precedent for attracting new foreign investment into the technology sector. In the long term, the project could act as a catalyst for the development of an entire electronics industry cluster in Central Asia, supporting the government’s goal of increasing industrial production by 1.4 times by 2026.