Armenia Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in armenia, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Information and Telecommunication Technology
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Overview

Armenia has a growing information and communications technology (ICT) sector.  Numerous international companies employ Armenians specializing in software development, industrial computing, electronics, and semiconductors. The sector has recorded significant growth in recent years and seen a continuing expansion of new companies and hiring as Armenia continues to increase its presence in global value chains. The number of firms actively operating in the ICT space exceeds 3,000, employing more than 30,000 workers, and yielding more than one billion dollars annually.  The ICT industry has been growing at around 20 percent annually, which may increase further driven by the arrival of thousands of new foreign high-skilled IT workers following Russia’s further invasion of Ukraine. 

There are several notable business areas within the Armenian ICT realm, including: customized software, web design and development, IT services and consulting, mobile app development, chip design and testing, computer graphics and multimedia, and games. Emerging business areas coming into view or already in development, including data science, artificial intelligence, quantum computing, and electronic design automation. These are of particular interest to Armenia as ICT companies explore opportunities to sustain aggressive growth.

The Armenian government has played an active role in supporting the development of the ICT industry. It has worked in close cooperation with international donors, including the United States, to improve the competitiveness of Armenian ICT firms in the global marketplace. Since 2019, the Ministry of High-Tech Industry has exercised oversight over the development and implementation of the government’s policies and strategies with respect to ICT and related industries. The government also seeks transform Armenia into a digital society more broadly. The Armenian government is implementing its country’s Digitalization Strategy in cooperation with international donors. The strategy envisages digital transformation of the Government, the economy and the society through introduction and development of innovative technologies, cyber security, data policy, e-government systems, coordination of digitalization and creation of common standards. 

On August 8, 2025, the United States and Armenia signed an AI and Semiconductor Innovation Partnership MOU. The agreement expands opportunities for U.S. firms by strengthening secure semiconductor supply chains, supporting IC and electronics development, and promoting commercialization of AI applications, while advancing conditions to elevate Armenia’s status within the U.S. export control framework. Armenia bills itself as a top destination for tech-related investment owing to a deep talent pool in mathematics and the natural sciences, good and growing levels of English proficiency, several good university programs, competitive labor and operating costs, government support for the sector, a strong diaspora network, and existing relationships with large multinational companies as part of global value chains.  

However, businesses report that they face challenges in scaling their operations as quickening growth drives demand for qualified talent that is outstripping local supply. To ensure Armenia continues to have a rich stock of highly qualified talent, several local universities and research institutions have increased their offerings of programs relevant to the ICT sector. Some have opened research laboratories and maker spaces in cooperation with international partners, local industry associations, and leading U.S. multinational companies, including Microsoft, IBM, and Emerson (National Instruments). These ventures are typically established in Yerevan, but are also present in secondary cities, including Gyumri and Vanadzor.  Linkages between these establishments and U.S. universities and research institutions are growing.

According to recent industry reports, approximately a third of ICT firms in Armenia claim some foreign ownership.  More than half of the foreign firms in the ICT sector in Armenia are based in the United States. International companies account for roughly half of all employees in the sector. Foreign branches tend to be development centers for parent companies. Successive governments have provided broad support for the development of Armenia’s high-tech landscape. The government has long identified the sector as a priority, signing memoranda of cooperation and agreement with foreign governments and multinational companies. In 2025, it started a new seven-year program to support the high-tech sector, including specific measures for technology companies and those hiring labor migrants. This includes tax incentives, compensation for labor migrants, and initiatives to foster the R&D development of the sector.
         
Technology centers, innovation districts, and free economic zones have been utilized to support the high-tech sector. Tax privileges have also been used as a tool to incentivize startups. The government is deploying other tools, including grants, study tours, educational programs, and the formation of a nascent investment fund, to support high-tech ventures.

Leading Sub-sectors

Software, web design and development, mobile application development, system design, and IT consulting services account for the bulk of activity in Armenia’s ICT industry. Armenia has found a more specialized niche thanks to the local presence of leading electronic design automation firms.

Several major multinational ICT firms maintain operations in Armenia. Firms include Synopsys, NVIDIA, Adobe, AMD, Microchip, Apple, Microsoft, D-Link, Emerson (National Instruments), Siemens, Intel, Cisco, IBM, Oracle, Broadcom, ServiceTitan, and BostonGene.  Since 2022, approximately 500 Russian tech companies have reportedly relocated or opened branches in Armenia following Russia’s further invasion of Ukraine. 

Armenia’s artificial intelligence (AI) ecosystem is experiencing significant growth, driven by government initiatives and international collaborations. The Armenian government has announced a national AI strategy focused on integrating AI into various sectors, promoting research and development, and establishing educational programs to cultivate AI talent.  It aims to position Armenia as a key player in the regional AI landscape, fostering innovation and technological progress.  

Firebird, an AI cloud startup based in San Francisco, has announced a $500 million public-private partnership with the Government of Armenia and NVIDIA to deploy thousands of state-of-the-art NVIDIA Blackwell GPUs and build a scalable AI “factory” in Armenia by 2026. The facility is expected to support over 100 megawatts of computing capacity and aims to establish Armenia—and the broader Caucasus region—as a competitive AI hub. Armenian Team Group, the parent company of Telecom Armenia and Ireland’s Imagine Broadband, will support the development of the Firebird’s AI infrastructure by providing technical expertise and advanced connectivity solutions to speed up data center deployment.  

The Afeyan Foundation for Armenia will also join as a founding investor in Firebird.  Its principal, Noubar Afeyan—CEO of Flagship Pioneering—will serve as a strategic advisor and founding partner of the company. Additionally, the Ministry of High-Tech Industry has partnered with Mistral AI to enhance AI infrastructure, support AI-driven business solutions, and improve public administration through AI-powered GovTech.  

Armenia opened its first supercomputer center in 2024, the National Supercomputer Center of Armenia, located in Engineering City in the outskirts of Yerevan. The Government has also acquired an NVIDIA supercomputer which will be installed at the Yerevan State University (YSU) for data analysis, visualization, high-performance calculation systems in healthcare, biomedical research and other areas. 

The business landscape in Armenia is witnessing a surge in AI-driven startups and investments. These startups are leveraging AI to develop solutions across diverse sectors, including e-commerce, healthcare, and finance. With a strong foundation in STEM education and a supportive ecosystem, Armenia is poised to become a significant contributor to the global AI industry. Armenia has hosted a number of major industry events that draw international attention. The Union of Advanced Technology Enterprises organizes DigiTec, Armenia’s leading technology exhibition, uniting tech industry leaders, innovators, and enthusiasts since 2005.  

The Union of Employers of ICT organizesSilicon Mountains, a significant tech summit that has taken place annually since 2019. In recent years, Armenia has also hosted the annual Engineering Week to develop the engineering and industrial component of Armenia’s ICT industry. Educational establishments and innovation districts are opening new opportunities in the ICT industry by cultivating talent and building ecosystems wherein new companies can find a foothold. Work is underway to develop “Engineering City” in the outskirts of Yerevan. When completed, this multi-million-dollar establishment will serve to host local firms, facilitate the incubation of startups, and provide access to state-of-the-art tools and technologies.

Opportunities

As Armenia seeks to move up the value chain and remain competitive within the ICT realm, a number of emerging fields and opportunities are coming into view. To the extent Armenia can be successful in developing new technologies, it can become a more desirable destination for contract research and development efforts. Armenia is in a good position to continue to provide such services, including software testing and prototyping, to customers abroad. Specific sub-sectors acknowledged as having potential include artificial intelligence pure research (and eventually engineering), semiconductor design and electronic design automation, and data science.      

Resources

•    Ministry of High-Tech Industry
•    Ministry of Economy
•    Enterprise Armenia 
•    Statistical Committee of the Republic of Armenia 
•    National Polytechnic University of Armenia
•    Yerevan State University
•    Enterprise Incubator Foundation 
•    Union of Advanced Technology Enterprises (UATE)
•    Union of Employers of Information and Communication Technology
•    Gyumri Technological Center 
•    Vanadzor Technological Center 
•    IBM Innovative Solutions and Technologies Center
•    DigiTec Expo
•    Silicon Mountains 
•    Engineering City
•    TUMO Center for Creative Technologies 
•    American Chamber of Commerce in Armenia

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