**Helsinki**: Experts argue that Finland is set to emerge as a key player in the European semiconductor sector, with initiatives aimed at tripling industry size within a decade and leveraging domestic capabilities to meet rising demand amidst global supply chain challenges.
In recent developments regarding the semiconductor sector, experts Toni Mattila from Business Finland and Joonas Mikkilä from Technology Industries of Finland are advocating for Finland’s potential as a significant player in reshaping the European chip industry. Their insights highlight the implications of the global restructuring of semiconductor value chains, particularly in light of the European Chips Act.
Finland’s strategic initiative, dubbed “Chips from the North,” aims for an ambitious growth trajectory within the semiconductor and microelectronics sectors, targeting an annual growth rate exceeding 10%. This initiative indicates a projected tripling of industry size within a decade, emphasising the transformative potential of the current economic landscape.
Historically, Finland’s electronics industry has long been dominated by major corporations, including Nokia, which has shaped a substantial ecosystem of suppliers and subcontractors. The shift in 2013, when Nokia refocused its business away from mobile phones, inadvertently catalysed a period of transformation within the industry. This shift coincided with a surge in entrepreneurship, resulting in the establishment of numerous deep tech startups. Today, Finland boasts around 300 firms in the microelectronics and photonics sectors, with a focus on small and medium enterprises (SMEs) demonstrating significant growth potential.
Finland’s capabilities in microelectronics derive from a robust foundation of expertise in various specialised fields. Notably, the nation has over 20 companies dedicated to integrated circuit design, a discipline that has expanded from the telecom sector’s historical applications. Moreover, advancements in semiconductor processing technologies, especially atomic layer deposition (ALD)—developed in Finland during the 1970s—continue to position the country as a leader in fabrication technologies.
Another strength lies in sensor technologies, particularly Micro-Electro Mechanical Systems (MEMS) used in healthcare, automotive, and industrial automation. Vaisala, a prominent Finnish firm, has contributed significantly to the MEMS field, particularly in environmental monitoring applications. Additionally, Finland is recognised for its expertise in photonics, with advancements in optical light sources and quantum technologies paving the way for future innovations in quantum computing and communication.
The collaborative ecosystem in Finland significantly bolsters its innovation capacity. Industry, academia, and public sector interactions foster a rich environment for knowledge sharing and resource exchange, which has historically driven successful innovation, as exemplified during Nokia’s peak.
Looking to the future, the Finnish semiconductor and microelectronics sector is poised for substantial growth, reinforced by alignment with European Union technological policies. By 2035, projections suggest the industry may generate revenue between €5-6 billion and expand its workforce to 20,000 employees. Six primary growth areas have been identified: chip design, MEMS and sensors, photonics, quantum technologies, advanced materials, and sustainable manufacturing processes.
Amid global supply chain challenges exacerbated by the COVID-19 pandemic and geopolitical tensions, Finland’s industry leaders understand the critical importance of bolstering domestic semiconductor production. The EU’s 2023 Chips Act, aimed at restoring the bloc’s semiconductor market presence to 20% by 2030, signifies a strategic response to external dependencies and underscores the value of local capabilities.
Finland’s established semiconductor know-how positions it as a vital contributor to the revitalisation of the European chip industry. However, realising these opportunities necessitates proactive measures to enhance talent acquisition, attract capital investments, and improve research and development efforts. Finnish authorities have committed to supporting this sector with substantial funding for infrastructure and competence centres in the coming years.
Successful implementation of these strategies will rely heavily on fostering collaboration between industry stakeholders and public entities, which is crucial for navigating the complex challenges ahead and ensuring the ambitions of the national chip strategy are realised. The Semiconductor Branch Group of Technology Industries of Finland, along with Business Finland and various local hubs, play a pivotal role in facilitating public-private partnerships essential for promoting innovation and growth in this critical industry.
Source: Noah Wire Services
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