Finland Revitalizes Europe’s Semiconductor Market with Deep-Tech, EU Funding

Finland could have the power to revitalize Europe’s semiconductor industry through its long-standing expertise, investments in R&D, and workforce development, potentially giving the EU semiconductor sector the push it needs to enter the race.

Finland’s national chip strategy will attract capital to enhance innovation, and shorten lab-to-lab timelines, supported by government funding and EU initiatives, such as pilot line infrastructure – pre-commercial production line that produces small volumes of new tech products – and new chip competence center.

Finland is leveraging its deep-tech expertise in chip design, photonics, and quantum technologies to carve out a new form of competition. With the European Union Chips Act pushing for increased semiconductor self-sufficiency, Finland’s initiative aligns with broader Europe Chips Act funding goals to secure supply chains and boost innovation.

Fostering collaborations within the EU with the help of industry leaders, academia, and policymakers, Finland will lay the groundwork for a resilient and sustainable semiconductor ecosystem.

EU Semiconductor Industry’s Much Needed Push

Once dominated Nokia, Vaisala, and ABB, Finland’s electronic industry began transforming in 2013 when Nokia exited the mobile phone business, triggering an influx of deep-tech startups and foreign investment.

Today, Finland hosts nearly 300 microelectronics companies, specializing in chip design, Micro-Electro-Mechanical Systems (MEMS) sensors, and advanced materials like atomic layer deposition (ALD).

In 1970, Finland became a leader in ALD due to its early development of the technology at Helsinki University of Technology. Initially developed for industrial use, now the country remains a world leader in ALD research and commercialization, with Finnish companies like Picosun and Beneq advancing applications in nanotechnology.

The EU’s Chips Act will support Finland further solidify its position as a global player in microelectronics.

 “We have a very strong education system and a lot of talent in technology.” says Peter Vesterbacka, the well-known front figure of the Finnish tech ecosystem.

Finnish Play in European Semiconductor Market

Geopolitical tensions and pandemic-driven supply chain disruptions have made the global production of semiconductors quite fragile.

Semiconductor autonomy is a priority under the Europe Chips Act, with EU semiconductor investment flow potentially doubling Europe’s global semiconductor market share to 20% by 2030, and Finland will be in the main contendor in this transformation.

The EU semiconductor industry is of paramount importance for Europe’s strategic autonomy and competitiveness, says a spokesperson from Business Finland.

“With our robust R&D foundation, we are in a good position to make substantial contributions to Europe’s semiconductor ambitions,” he added.

Finland’s semiconductor strategy focuses on the following:

• Chip design for energy-efficient processors and AI applications.
• MEMS sensors used in medical devices, automotive, and industrial internet of things (IoT)
• Photonics is used for optical communication and imaging.
• Quantum technologies for superconducting qubits and cryogenic electronics.
• Advanced materials science in atomic layer deposition.

The EU semiconductor alliance will fuse the forces of European industry, academia, and government to keep Finland at the forefront of the EU semiconductor research and manufacturing.

Through Chips from the North, Finland is about to attract major investments and multitude its capacity to 20,000 employees by 2035, solidifying its position in the European semiconductor landscape.

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