The Nordic and Baltic Chip Competence Centers have signed a new Memorandum of Understanding (MoU) bringing together Finland, Sweden, Norway, Denmark and the Baltic States to jointly promote the strengthening of research, technology and industrial capabilities.
The agreement was formalized at a meeting of the Nordic Chip Centers and sets out a shared vision to promote education, research and industrial support across borders.
This MoU marks an important step towards building a coordinated Nordic semiconductor ecosystem.
By coordinating efforts and sharing expertise, participating countries aim to increase their collective impact, raise their international profile and more effectively respond to the supply chain and technological challenges facing Europe’s chip industry.
Building on existing Baltic cooperation
The Nordic Agreement complements previous cooperation between the Baltic states.
Latvia, Lithuania and Estonia previously signed their own memorandum of understanding to strengthen regional efforts in microelectronics and semiconductor innovation.
The agreement focused on synchronizing national strategies, pooling research capabilities and accelerating innovation, in line with the objectives of the European Chip Act.
These frameworks work together to form a multi-layered cooperation model. In short, a strong national ecosystem is strengthened by collaboration between the Baltic states, and by cooperation between the Nordic and Baltic states.
The ultimate goal is to strengthen the region’s competitiveness in the global semiconductor market, while contributing to European technological sovereignty.
Shared priorities: innovation, skills and industry support
At the heart of the new MoU are three core areas of cooperation: Firstly, the partners aim to foster innovation and raise the international profile of the Nordic and Baltic chip competence centers through joint initiatives and coordinated outreach.
Second, education and research development will be strengthened through shared learning programs, enhanced knowledge exchange, and improved access to research infrastructure. This is considered important to address Europe’s growing skills gap in microelectronics and related fields.
Third, the agreement focuses on supporting start-ups and small and medium-sized enterprises (SMEs). By facilitating access to pilot production lines and advanced research infrastructure, particularly through the EU’s Chip Joint Venture Programme, the centers aim to lower barriers to market entry and scale-up.
Semiconductor market growing in the Baltic countries
The timing of the agreement reflects positive market trends in the region. Estonia and Lithuania’s semiconductor sector is expected to grow by approximately 5% annually from 2023 to 2028, with a total market value increasing from approximately 41 million euros to 53 million euros.
The outlook for Latvia is similarly strong, with chip exports expected to grow by around 6% annually from 2021 to 2026.
These trends clearly demonstrate that chip competence centers are becoming increasingly important as hubs connecting research, education and industry.
Horizon Europe and Baltic Sea and Nordic Strategy
Looking ahead, the Baltic partners plan to jointly file a Horizon Europe Coordination and Support Action (Horizon-CSA). The proposed project will map the region’s semiconductor ecosystem and lay the foundations for a unified Baltic-Nordic chip alliance.
Such a strategy would enable future EU-funded projects to strengthen research infrastructure and provide targeted support to start-ups and SMEs across Estonia, Latvia and Lithuania.
Latvia’s Chip Competence Center goes online
Latvia has already taken concrete measures at the national level. In March 2025, the Latvian Chip Competence Center was established in partnership between Riga Technical University (RTU) and the University of Latvia (UL).
The center builds on the 2022 National Memorandum of Understanding involving universities, government ministries, industry leaders and research institutes to develop Latvia’s chip capabilities.
Designed to be part of Europe’s broader chip competence center network, the Latvian hub will focus on semiconductor microelectronics, silicon and polymer photonics, quantum technology, and open source chip design. It aims to provide comprehensive support to the industry, especially startups and small and medium-sized enterprises.
Positioning for long-term impact
RTU works closely with UL and positions itself as the coordinator of Latvia’s semiconductor ecosystem.
Future plans include establishing a dedicated chip design and testing laboratory. This institute represents the largest share of value in the chip supply chain and is an area where Latvia has a competitive advantage in skills and technology.
As Nordic and Baltic chip competence centers become more closely linked, 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.
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