Moldova's Electronics Sector: Attracting International Brands and Boosting Exports
The electronics industry in Moldova began to develop in the mid-1960s when several specialized factories were established. These factories focused on producing microchips, ultra-thin wires, measuring devices, electrical engineering components, semiconductors, and other advanced technologies. During this period, most production was directed towards the Soviet Union's military and defense sectors. Following the collapse of the USSR, the industry faced a significant decline as defense orders ceased, leading to a period of deindustrialization and a challenging transition phase for Moldova’s electronics sector.
This period has marked a critical transition because, since 2019, Moldova has made significant strides in revitalizing its electronics industry. Over the past five years, the country has established a robust legislative framework, followed by infrastructural developments, creating an attractive environment for investors. As a result, the electronics industry in Moldova is now actively growing and evolving.
Foreign investors from countries with long-standing traditions in electronics, such as Germany, Italy, Romania, France, the Netherlands, and the UK, have entered Moldova’s electronics industry. These countries are renowned for their history of innovation and technological advancements. Notable global brands such as Beurer, Magnetec Components, Steinel, and Arobs operate in Moldova. Additionally, several local companies in Moldova actively collaborate with internationally recognized partners, further integrating the country's electronics industry into the global market.
Moldova presents a highly attractive landscape for foreign direct investment, offering several strategic advantages. The country boasts a skilled and cost-competitive labor force, particularly in technical fields such as electronics and engineering. Its geographic location serves as a gateway to EU and Eastern European markets, enhancing Moldova’s appeal as a regional hub. Investors benefit from the Free Economic Zones (FEZs), which provide tax incentives, customs exemptions, and Industrial Parks with tailored infrastructure for industrial development. Additionally, the Moldova Innovation Technology Park (MITP) offers a unique virtual platform that simplifies the business environment for IT and tech companies, granting a single 7% tax on turnover. Moldova's business-friendly legislation ensures streamlined registration processes, investor protection, and special incentives for key industries, including electronics, automotive, and IT. The country’s dual education system further strengthens its workforce, offering a steady supply of highly qualified professionals tailored to industry needs. These factors, combined with competitive operational costs, position Moldova as an ideal location for companies seeking growth and innovation in a stable, business-friendly environment.
Size of the electronics industry in Moldova
Moldova’s electronics industry currently consists of 210 companies and 5 educational institutions. The country has successfully implemented the globally recognized dual education system, which enables educational institutions to train specialists aligned with the needs of industry players. Through this system, students combine academic studies with hands-on work experience at companies, allowing them to graduate as highly skilled and industry-ready professionals. This approach ensures that graduates are equipped with the skills required by specific enterprises and can earn competitive salaries from the outset of their careers.
The Association of Electronics Companies in Moldova (ACEM) includes 27 companies and 5 educational institutions dedicated to advancing the electronics industry. In 2023, the total turnover of ACEM members exceeded USD 100 million. ACEM members actively collaborate with related enterprises and industries, greatly enhancing the ecosystem surrounding the electronics sector. Notably, companies associated with the electronics industry outnumber core members by a factor of eight, demonstrating the broad network and impact of ACEM within the sector.
Currently, there are 210 companies associated with the electronics industry operating in Moldova, employing approximately 14,000 people. Of these companies, 18.6% are joint ventures or foreign enterprises, while 81.4% are locally funded. In 2022, these electronics-related companies generated a total turnover of USD 414 million, with a profit of USD 20 million, underscoring the sector's growing contribution to Moldova's economy.
Over the past five years, exports of electronics industry products from Moldova have nearly doubled, to USD 535 million in 2022. This represents 12.5% of all Moldovan exports. This upward trend is expected to continue.
Several key players distinguish the Moldovan electronics industry:
- ADD Grup: With over 32 years of experience, ADD Grup develops and manufactures high-precision smart equipment for electricity and water metering systems. The company has produced over 8 million smart meters that are currently installed in 35 countries worldwide.
- Informbusiness: This company has achieved significant advancements in enhancing energy efficiency in public transportation. They have reduced trolleybus energy consumption from 3-3.5 kW/km to 2 kW/km and developed Moldova’s first electric bus, which consumes only 0.75-0.85 kW/km and can travel up to 450 km on a single charge. Informbusiness's products are used in 170 cities globally, including San Francisco, United States. In Chisinau, they dominate 18% of the transportation electronics market, leveraging the city as a testing ground for their technological innovations.
- ELIRI: A research and manufacturing company specializing in the development of industrial technology and equipment for producing molded glass-insulated microwires with core diameters of less than 1 µm. By early 2024, ELIRI has produced over 50 million kilometers of microwires. The ultra-thin diameter significantly reduces the weight and size of products, while continuous glass insulation enhances their stability and expands their applications, including use in underground, underwater, aerial, and space environments.
Key electronics exports driving Moldova's global market presence
The top 10 exports in the electronics industry of Moldova are primarily centered around high-tech cables and wires, which constitute 88.9% of the industry's output, and transformers and inductive components, accounting for 6.2%. Other areas of export significance within Moldova’s electronics sector include:
Cables and Wires harnesses: The dominant export product, widely used in various industries including automotive, telecommunications, and energy.
Transformers and Inductive Components: Essential for power conversion and management in electronic systems, these components are a key part of Moldova’s exports.
Printed Circuit Boards (PCBs) Design and Manufacture: PCBs are crucial in all electronic devices, and Moldova is expanding its production capabilities in this area.
Electronic Manufacturing Services (EMS) & Electronic Contract Manufacturing (ECM): These services include the assembly, testing, and management of electronic components and systems.
Electronic Devices Design and Manufacture: Encompassing consumer electronics, industrial devices, and specialized electronic products.
Nano Sensors and Micro Wires: Advanced technologies with applications in medical devices, telecommunications, and industrial automation.
Toroid Cores and Common Mode Chokes: Used in power electronics, these components are integral to managing electromagnetic interference.
PCBA, SMD & THT Montage: Printed Circuit Board Assembly (PCBA), Surface-Mount Device (SMD), and Through-Hole Technology (THT) montage are crucial for modern electronics production.
Embedded Systems and R&D: Involving the design and development of integrated hardware and software solutions for various applications.
Cable Assemblies and Wiring Harnesses: These are vital for connecting various components in electronics, automotive, and industrial equipment, making them an important export product.
Testimonials of representatives of Electronics Industry of Moldova:
Ruslan Casico, Head of Sales and Marketing ADD Grup:
«ADD Grup is a high-tech company from Moldova that designs and manufactures benchmarking smart metering solutions. Our company covers the full range of manufacturing processes, from product development to customer support. With genuine Moldovan origin, we became a global company operating in more than 27 countries and supplying circa 8 million smart meters worldwide. Our team in Moldova acts as a key enabler for our globalization process having a complete range of competencies for the electronics sector.»
Mihai Murgulescu, Co-founder, Mechatronics Innovation Center:
«We opened a joint venture in Moldova in 2018 because of the incentives of the IT Park legislation. Now we have 16 programmers and hardware engineers and we are growing fast. We think it is a great incentive for developing the IT business and attracting investment in Moldova. »
Oleg Burlacu, Elektromanufacturing S.A.:
«As a contract manufacturer of inductive electronic components modules and electrical assemblies we successfully operate since 2013. In the Republic of Moldova, we discovered an investment area with a high potential. We have identified a flexible labor market. Our professional cooperation with the government of local authorities is very productive. Moldova has an attractive and open fiscal policy and legislative base. This supports sustainable growth and extension of our business. We are open to new business opportunities and challenges.»
Doina Guzun
Communication Specialist, Invest Moldova Agency
doina.guzun@invest.gov.md
+37378203879
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