In a recent discussion, Toni Mattila from Business Finland and Joonas Mikkilä from Technology Industries of Finland shed light on Finland’s semiconductor and microelectronics value chains and how they position the country as a key player in transforming the European chip industry.
Finland has recognized a significant growth potential in the semiconductor and microelectronics sector, particularly in light of the global restructuring of value chains and the European Chips Act. The national growth strategy, known as “Chips from the North,” aims to drive over 10% annual growth in the industry, ultimately tripling its size within a decade.
The Finnish electronics industry has undergone a transformation in recent years, with the emergence of new deep tech companies and a strong ecosystem of suppliers and subcontractors. This shift was further propelled by Nokia’s decision to exit the mobile phone business in 2013, opening up opportunities for foreign companies to establish a presence in Finland.
Today, Finland boasts nearly 300 companies in the microelectronics and photonics sector, with a focus on areas such as chip design, advanced materials, sensors, and photonics. The country’s expertise in these domains has positioned it as a leader in the global semiconductor market.
One of the key drivers of innovation in Finland is collaboration between industry, academia, and the public sector. This collaborative approach has accelerated the development of new technologies and products, mirroring the success of Nokia in previous decades.
Looking ahead, the Finnish semiconductor industry is poised for significant growth, with projections indicating a tripling of revenue by 2035 and a doubling of the workforce. The industry strategy outlines six key growth areas, including chip design, MEMS and sensor innovations, photonics, quantum technologies, advanced materials, and sustainable process technologies.
In response to global challenges such as the COVID-19 pandemic and geopolitical tensions, the EU has identified advanced semiconductors as critical technologies for economic security and competitiveness. The EU’s Chips Act aims to double Europe’s semiconductor market share by 2030, with Finland expected to play a key role in revitalizing the European chip industry.
To capitalize on growth opportunities, Finland must focus on enhancing R&D efforts, improving workforce skills, and attracting capital investments. Collaboration between industry stakeholders, government, and universities will be crucial in achieving these goals and navigating the evolving business landscape.
Overall, Finland’s semiconductor and microelectronics sector holds immense potential for growth and innovation, positioning the country as a key player in transforming the European chip industry.
