Electronics – A Promising Sector for Investment in Ukraine: New Analytical Report by UkraineInvest

UkraineInvest has published a new sectoral analytical report highlighting the investment potential of Ukraine’s electronics industry. The study explores global supply chain transformation trends, Ukraine’s capacity for electronics manufacturing, existing infrastructure and raw material base, as well as the key factors driving the sector’s investment appeal.

Global demand for electronics is rapidly increasing. By 2029, the number of users of electronic devices is expected to exceed 3 billion, and the semiconductor market could reach approximately USD 1 trillion by 2030. In this context, Ukraine is well-positioned to become a new Eurasian hub for electronics and component manufacturing.

Ukraine’s key advantages include:

Strategic geographic location and 19 free trade agreements with 46 countries;
Over 5,600 companies operating in the electronics sector (as of 2023);
Abundant reserves of critical raw materials such as graphite, quartzite, germanium, and gallium arsenide;
A highly skilled workforce — Ukraine ranks 8th globally in terms of the number of IT professionals, supporting the development of advanced technologies;
Active government policies to support the industry, including the Chips Act UA initiative.

Despite the ongoing war, Ukraine’s electronics industry continues to demonstrate resilience. Demand remains strong, driven by the critical need for electronic components in the energy sector, which has suffered from enemy attacks, and the rapid development of military technologies.

In 2023, Ukraine exported electronics worth USD 1.63 billion, with the EU being the primary export market. Domestic demand is also significant — in 2023 alone, electronics imports reached USD 6.67 billion.

Ukraine is one of the few European countries with the resources necessary to support a full semiconductor production cycle. Combined with a well-developed R&D infrastructure (over 100 centers), accessible financial tools for startups, and ambitious government plans, this creates favorable conditions for investment growth.

While foreign direct investment (FDI) dropped significantly in 2022 due to the full-scale russian invasion, it began recovering in 2023, despite the ongoing conflict. Electronics manufacturing accounts for 3.2% of total FDI in Ukraine’s manufacturing sector. The availability of war risk insurance and government efforts to improve the investment climate are contributing positively to the sector’s development.

You can access the full analytical report at the following link:https://ukraineinvest.gov.ua/en/industries/electronics/

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