Finland is emerging as a key player in the global semiconductor landscape, driven by the ambitious ‘Chips from the North’ initiative, which intends to strengthen Finland’s position in semiconductor manufacturing, research, and design by 2035. Current projections indicate growth from the existing €1.6bn in revenue to between €5bn and €6bn, and the simultaneous creation of thousands of new jobs.
Oulu is at the forefront of this transformation, leveraging its legacy as a Nokia stronghold to specialise in radio-related chips and wireless technologies, including advances from GSM to 6G. The city’s innovations in wireless connectivity, telecommunications, embedded systems, IoT, and industrial electronics have gained global traction, with notable health tech companies like Oura, Polar, and Optomed leading the way in R&D. Oulu is home to a variety of companies in the semiconductor industry, increasingly making the city a hub in the global semiconductor space. For example, Bosch Sensortec is expanding its presence in Oulu as a leader in MEMS sensors. Similarly, MediaTek has established a base in Oulu, where it focuses on advancing 5G product development and supporting educational initiatives, while Aspocomp manufactures high-tech circuit boards for industries like automotive and aerospace, prioritising quality and advanced technologies.
Alongside this growing reputation, Oulu has evolved into a hub for modern defence and security solutions, with a focus on innovative dual-use technologies. Established firms such as Bittium and KNL provide essential military services and products, enhancing the region’s reputation in this critical sector.
Upskilling and educating
With plans to attract and educate more than 15,000 new professionals over the next ten years, Finland is committed to building a skilled workforce in the semiconductor sector. In Oulu, efforts are underway to enhance educational programmes in microelectronics and promote vocational training, aiming to develop a talent pool that aligns with the industry’s evolving needs. Initiatives like the MEREBE project are integral to this strategy, fostering a microelectronics ecosystem in Oulu that connects industry specialists with educational institutions, including OAMK, OSAO, and the University of Oulu. This project aims to tackle skill shortages through focused training programmes, enhancing the abilities of local talent while also bringing in international expertise, which reinforces Finland’s goal of becoming a premier semiconductor hub in Europe.
As a leading regional development organisation, BusinessOulu unites companies, researchers, and investors across various key sectors, including ICT, semiconductors, health technology, smart industry, and creative industries. Adopting a cluster-based approach promotes collaboration among businesses, universities, and research institutes, driving innovation across multiple domains. Through a range of joint events, workshops, and international networking opportunities, BusinessOulu plays a pivotal role in converting research excellence into business development, solidifying Oulu’s identity as one of Finland’s most dynamic technology hubs.
Another key programme is the University of Oulu’s Devices & Things ecosystem, encompassing over 300 hardware researchers and 100 project partner companies. The ecosystem aims to facilitate collaboration throughout the entire innovation chain, including ICT materials, microelectronics, and advanced components like SoCs, chips, antennas, and sensors for future hardware modules and devices. By targeting the growing demand for cutting-edge technologies critical to the healthcare, automotive, and energy sectors, Devices & Things enhances the region’s significance in semiconductor design and beyond.
Collaboration in Finland and beyond
The ‘Chips from the North’ strategy highlights the value of collaboration in driving innovation. Finland plans to invest €5.5bn in joint R&D funding over the next decade and establish new research and design centres. For example, the University of Oulu and VTT Technical Research Centre of Finland are providing specialised programmes and research that meet industry requirements, setting up a foundation for the future of research, and fostering an innovative and growth-oriented environment. VTT is a specialist in printed electronics.
The OIA Consortium
Central to Oulu’s identity is the Oulu Innovation Alliance (OIA), a consortium dedicated to fostering research and innovation. The OIA’s vision for 2021–2027 aims to position Oulu as the most advanced European ecosystem in creating global value through digitalisation and addressing sustainability challenges. By facilitating access to research, funding, and international networks, OIA acts as a pivotal partner for innovation in Northern Finland. In recognition of its progress, Oulu ranked third in the European Capital of Innovation Awards (iCapital) in 2024 in the ‘European Rising Innovative City’ category.
FiCCC
On a national level, the Finnish Chips Competence Centre (FiCCC) was established as part of the European Chips Act, aiming to enhance Finland’s role in the semiconductor value chain. FiCCC serves as a central hub, connecting research, industry, and entrepreneurship to EU networks and resources. The initiative supports the ‘Chips from the North’ strategy, targeting a tripling of the national semiconductor industry’s revenue by 2035 and fostering expertise in critical areas such as chip design, MEMS, sensors, and quantum technologies.
Within FiCCC, BusinessOulu spearheads Business Ecosystem and Entrepreneurship, an initiative that focuses on translating research excellence into business growth by mapping national companies and funding opportunities, connecting startups with mentors and investors, and facilitating access to the EU Chips Fund. BusinessOulu also holds advisory roles in other work packages related to design, processes, talent development, and communication, which ensures a comprehensive integration of business perspectives throughout the project.
ERSA membership
Most recently, the Oulu Region officially joined the European Semiconductor Regions Alliance (ESRA), a network comprising 36 European regions that collaborate to enhance Europe’s semiconductor value chain. This membership underscores Oulu’s growing significance as Finland’s second major semiconductor hub and reinforces its connections to European research and manufacturing through initiatives such as FiCCC.
A strong outlook
Oulu is emerging as a significant player in the semiconductor industry. Its focus on innovative design capabilities, fostering talent, upskilling the workforce, and its role as a hub for research and industry to connect and innovate have not just supported Finland nationally but are making a significant impact globally. ‘Chips from the North’ is only the beginning of a bright future for Oulu and Finland’s position in Europe’s technology landscape, designed not just to enhance the local economy but also to establish Finland as a vital player in Europe’s tech landscape.
Please note, this article will also appear in the 24th edition of our quarterly publication.