Arctic Sapphire AS aims to drive a green revolution in the semiconductor industry

To strengthen Norway's position in the global semiconductor industry, we have approved a comprehensive financing package for Arctic Sapphire AS, a company based in Sulitjelma in Fauske municipality, Nordland.

'With grants and loans of up to NOK 77.2 million from us, Arctic Sapphire is taking an important step towards establishing Norway’s first future-ready factory for zero-emission sapphire crystals. This project has significant potential to create value both locally and nationally through jobs and export revenues, making it a natural project for us to support,' says our CEO, Håkon Haugli.

Arctic Sapphire, founded in 2019, aims to revolutionise the production of sapphire crystals, a critical component in semiconductors and micro-LED displays. With global production currently dominated by Russia and China, this project represents a strategic shift towards a more environmentally friendly and geopolitically independent supply chain.

'We have been in contact with Innovation Norway since 2019, when we received funding that enabled us to establish a solid ownership structure capable of taking the company forward. At Arctic Sapphire's current stage, the risk is very high, so the support we have received from Innovation Norway this time is crucial to making the project a reality,' says Ståle Indregård, CEO of Arctic Sapphire.

The Austrian family-owned Ebner Group has developed a new furnace technology that will significantly reduce both energy and material consumption compared with current standards. The chosen location in Sulitjelma, with its natural cooling water and surplus hydropower, will enable further reductions in energy consumption, making production considerably more environmentally friendly.

This project will benefit not only the environment, but also the local economy. Plans are in place to establish a pilot plant which, if successful, will lead to a full-scale plant with around 1,000 furnaces and could create up to 400 new jobs in the region. This will have a significant impact on employment and skills development in Sulitjelma and the surrounding area.

'Our long-term goal is to establish a manufacturing company operating up to 1,000 sapphire glass furnaces in Sulitjelma and make Arctic Sapphire a significant player in the global sapphire market. Locally, we aim to build a robust company that provides secure, stable jobs in Sulitjelma for years to come,' says Indregård.

Our funding, combined with substantial financial backing from majority shareholder Ebner Group, ensures that the project is fully funded. With strong long-term profitability expected and support from Nordland County Council, Arctic Sapphire is well positioned to lead the way towards a greener future for sapphire production and contribute to Norway's export ambitions.

This initiative aligns with the European Chips Act and underlines Norway's commitment to promoting green investments and strengthening its position in Nordic trade and investment promotion. The project will help move Norway towards a more sustainable and self-reliant industrial future.