Northern Europe is taking a decisive step to secure its place in the global semiconductor landscape.
Chip competence centres across the Nordic and Baltic regions have signed a new memorandum of understanding (MoU) that brings together Finland, Sweden, Norway, Denmark, and the three Baltic states in a coordinated push to strengthen research, skills, and industrial capacity.
The agreement was formalised during a meeting of Nordic chip centres and sets out a shared vision to advance education, research, and industrial support across borders.
The MoU marks a significant step toward building a coordinated Northern European semiconductor ecosystem.
By aligning efforts and sharing expertise, the participating countries aim to increase their collective impact, improve international visibility, and respond more effectively to supply chain and technology challenges facing Europe’s chip industry.
Building on existing Baltic cooperation
The Nordic agreement complements earlier collaboration among the Baltic states themselves.
Latvia, Lithuania, and Estonia previously signed their own MoU to consolidate regional efforts in microelectronics and semiconductor innovation.
That agreement focused on synchronising national strategies, pooling research capabilities, and accelerating innovation in line with the objectives of the European Chips Act.
Together, these frameworks create a layered model of cooperation: strong national ecosystems, reinforced by Baltic coordination, and now amplified through Nordic–Baltic collaboration.
The ultimate goal is to enhance the region’s competitiveness in the global semiconductor market while contributing to Europe’s technological sovereignty.
Shared priorities: Innovation, skills, and industry support
At the heart of the new MoU are three core areas of cooperation. First, the partners aim to foster innovation and raise the international profile of Nordic and Baltic chip competence centres through joint initiatives and coordinated outreach.
Second, education and research development will be strengthened via shared study programmes, enhanced knowledge exchange, and improved access to research infrastructure. This is seen as critical to addressing Europe’s growing skills gap in microelectronics and related fields.
Third, the agreement places strong emphasis on supporting startups and small and medium-sized enterprises (SMEs). By facilitating access to pilot production lines and advanced research infrastructure – particularly through the EU’s Chips Joint Undertaking programme – the centres intend to lower barriers to market entry and scale-up.
A growing semiconductor market in the Baltics
The timing of the agreement reflects positive market dynamics in the region. The semiconductor sectors in Estonia and Lithuania are projected to grow by around 5% annually between 2023 and 2028, increasing combined market value from approximately €41m to €53m.
Latvia’s outlook is similarly robust, with chip exports forecast to grow by about 6% per year between 2021 and 2026.
These trends underline why chip competence centres are becoming increasingly important as hubs connecting research, education, and industry.
Horizon Europe and a Baltic-Nordic strategy
Looking ahead, the Baltic partners plan to jointly apply for a Horizon Europe Coordination and Support Action (Horizon-CSA). The proposed project would map the regional semiconductor ecosystem and lay the groundwork for a unified Baltic-Nordic chip alliance.
Such a strategy would unlock future EU-funded projects to strengthen research infrastructure and provide targeted support for startups and SMEs across Estonia, Latvia, and Lithuania.
Latvia’s chip competence centre comes online
Latvia has already taken concrete steps at the national level. In March 2025, the Latvian Chip Competence Center was established by Riga Technical University (RTU) in partnership with the University of Latvia (UL).
The centre builds on a 2022 national memorandum involving universities, government ministries, industry leaders, and research institutions to develop Latvia’s chip capabilities.
Designed to become part of the wider European network of chip competence centres, the Latvian hub focuses on semiconductor microelectronics, silicon and polymer photonics, quantum technologies, and open-source chip design. It aims to provide comprehensive support to industry, particularly startups and SMEs.
Positioning for long-term impact
RTU, working closely with UL, has positioned itself as the coordinator of Latvia’s semiconductor ecosystem.
Future plans include establishing a dedicated chip design and testing laboratory – an area that represents the largest share of value in the chip supply chain and where Latvia has a competitive advantage in skills and technology.
As Nordic and Baltic chip competence centres align more closely, the region is steadily transforming from a collection of small markets into a coordinated innovation powerhouse – one designed to play a meaningful role in Europe’s semiconductor future.
