Moldova’s electronics sector is undergoing a renaissance, with the rise to prominence of new companies in the sector, many of which have become important parts of European supply chains in the automotive and other sectors. 

It’s a very different picture from 40 years ago, when Moldova, then part of the Soviet Union, had an electronics sector that was mainly focussed on defence, although the small republic also produced household appliances. Since independence in the early 1990s, however, Moldova’s electronics industry has been completely reborn, Elena Maevski, executive director of the Association of Electronics Companies in Moldova (ACEM) told bne IntelliNews in an interview in Chisinau. 

"The electronic sector activities in Moldova started at the beginning of the 1960s. In Moldova, as part of the Soviet Union, we developed electronics mostly for defence, as well as some household uses,” said Maevski. These factories produced sophisticated electronics, including components for military use, equipment for rockets and other high-tech applications.

“The factories in Moldova were cutting-edge, producing complex electronics largely for defence purposes,” Maevski said. The sector then virtually collapsed following the breakup of the Soviet Union, which led to a period of deindustrialisation and a near-complete halt in investment in electronics.

But it experienced a rebirth after the first difficult years of transition and has grown up again as a primarily export-driven industry focused on civilian applications.

“The concept of the electronics industry changed. In Moldova we do not produce at all for defence. We produce for civil applications — such as power for city public transport, sophisticated smart meters, scales, wire harnesses for the automotive industry, lighting solutions and many others.”

Founded in 2019, the Moldovan Electronics Association now represents over 210 companies, across a broad range of sub-sectors. “Our primary objective is to develop, promote, and increase the competitiveness of the electronics industry in Moldova,” Maevski explained, saying that collaboration with government agencies, international organisations and NGOs has been critical to supporting the sector.

Some of the high-profile local companies include ADD Group, a major producer of smart metering solutions, which exports to over 32 countries worldwide and has produced more than 8mn smart meters. Another is Informbusiness, a specialist in energy efficiency within public transportation that developed Moldova’s first electric bus. Its technology is used not only in Chisinau and other Moldovan cities, but in 170 cities worldwide. In 2023, it inaugurated a new assembly plant for trolleybuses and electric buses in Chișinău. 

Other companies have emerged as suppliers to the automotive industry, and Moldova is particularly strong in exports of high-tech cables and wires. Companies in this area include ELIRI, which produces advanced technology and equipment for the creation of moulded glass-insulated microwires. Moldovan companies supply well-known automotive brands such as Volkswagen, Renault and Stellantis. 

Alongside these local companies are a growing number of international companies which, Maevski says, “play a crucial role in modernising the electronics industry.”

Growth of the sector has been helped by Moldova’s advances towards EU integration. The country signed its Association Agreement and Deep and Comprehensive Free Trade Area (DCFTA) agreement in 2014. In 2022, Moldova, along with neighbouring Ukraine, was given EU accession candidate status, and in December 2023 it got the nod to start accession talks. In October 2024, Moldovans voted (albeit narrowly) in a referendum in favour of including the country’s EU accession aspiration in the constitution. 

“Moldova’s path is to integrate into the EU. International companies export to their mother companies or countries where they come from. Moldova’s integration into the EU also helps local producers to export their products abroad,” said Maevski. 

The emphasis on exports is essential for Moldova, where the local market is too small to sustain the sector alone. Electronics sector exports have grown steadily, reaching $536mn in 2022 — double the 2016 figure.

“This export growth has been driven by international companies establishing production in Moldova, thanks to favourable legislation and government incentives,” according to Maevski. 

One of Moldova’s advantages is its highly skilled workforce, thanks to strong educational partnerships that supply trained professionals to the electronics sector. “We see local and international companies investing heavily in education, partnering with universities and vocational schools to develop curriculums that meet the demands of the electronics industry,” Maevski explained. This strategy not only attracts foreign investors but also provides local companies with a steady pipeline of qualified workers.

The country is not just a centre for low-value manufacturing. Maevski points to the example of Germany’s Magnetec, which launched operations in Moldova’s second city Balti. “Magnetec is expanding their production in Moldova because they identified that we have very highly skilled staff, who will not only help them produce parts or components, but help them carry out the R&D for their components.” 

Another international company active in Moldova is Germany’s Steinel, which produces lighting and sensor technology at its factories in several European countries including Moldova. 

The sector also benefits from Moldova’s multilingual workforce, which includes Russian, Romanian, English, French, Italian and Turkish speakers, among others. “Being a multi-language country makes it easier to communicate with global partners and clients without language barriers,” Maevski pointed out.

Moldova’s free economic zones (FEZ) have played a role in attracting foreign investors. Companies operating within these zones enjoy preferential tax rates, easing their cost burden and helping them remain competitive. 

The country’s proximity to European markets is another aspect. “Our logistics are favourable, too,” said ACEM’s head. “We’re just a two-hour flight from Germany, and goods can be transported by lorry within three days, making Moldova an attractive production base for European companies.”

Still, companies in the sector have had challenges to overcome. Maevski pointed to the war in neighbouring Ukraine, which forced some electronics companies to reorient. "Before the war in Ukraine started, our market was divided. We had companies exporting to the CIS and also to the EU. Unfortunately electronics companies faced some challenges when the Russia, Belarus and Ukraine markets were closed due to the war, but most were ready to redirect, or to identify new markets,” Maevski said. "Some companies closed their doors because they were oriented only to the Russian or Ukrainian market, but most companies identified extra markets.”

Maevski believes the sector has strong prospects for future growth. Admittedly, she said, “Sometimes problems happen, because the electronics sector is part of a global chain and international problems can cause internal problems, but we think will have constant growth.” 

She points out that ACEM is aware of new foreign companies considering an entry to the Moldovan markets or expansion of their existing operations, while local companies continue to grow. “The electronics sector continues its growth under any circumstances,” she said.