The electronics industry in Moldova began to develop in the mid-1960s when several specialised 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 defence sectors. Following the collapse of the USSR, the industry faced a significant decline as defense orders ceased, leading to a period of deindustrialisation 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 revitalising 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.
Notable global brands such as Beurer, Magnetec Components, Steinel, and Arobs operate in Moldova. Additionally, several local companies in Moldova actively collaborate with internationally recognised 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 labour 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 seven per cent 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.
Size of the electronics industry in Moldova
Moldova’s electronics industry currently consists of 210 companies and five educational institutions. The country has successfully implemented the globally recognised 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.
In 2023, the total turnover of ACEM members exceeded 100 million US dollars. 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 per cent are joint ventures or foreign enterprises, while 81.4 per cent are locally funded. In 2022, these electronics-related companies generated a total turnover of 414 million US dollars, with a profit of 20 million US dollars, 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 535 million US dollars in 2022. This represents 12.5 per cent of all Moldovan exports.
This content has been produced in collaboration with a partner organisation through our Global Visibility Programme. Our programme helps companies and organisations boost their digital presence and strengthen the thought leadership of their experts. Find out more here.
Add Comment