Semiconductors – a rapidly growing value chain
'Few people are probably aware that Norway has considerable expertise in semiconductors, and that we help design electronics used in consumer products around the world,' says our CEO, Håkon Haugli. 'The companies developing and designing semiconductors in Norway form a significant, export-intensive industry, with businesses scaling very rapidly. They draw on specialist Norwegian expertise and compete successfully in international markets.'
The report identifies 50 Norwegian companies that primarily work with chip design, chip manufacturing, or chip assembly and packaging. They employ around 2,000 people and generate revenues of more than NOK 10 billion. The value chain has seen its strongest growth in recent years, with value creation more than doubling from 2019 to 2021. This growth looks set to continue.
Leading in low-power technology
Norway's specialist expertise lies in chip design and low-power wireless communication. The largest of these companies, Nordic Semiconductor, is a global leader in low-power Bluetooth communication.
The report shows that companies producing integrated circuits are highly productive. While average value creation per employee among businesses in mainland Norway was just over NOK 1 million, it reached almost NOK 2.5 million per employee in companies producing integrated circuits in 2021.
Sensors are another area of specialisation
Norway specialises in semiconductor design, although some companies also manufacture them here. This is particularly true of miniaturised sensors that detect movement, pressure, temperature or acceleration. Sensors made in Norway are used in a wide range of fields, including medicine and subsea applications, and were even used in the Mars rover when it landed on Mars.
Most chips from Norway are manufactured by SINTEF MiNaLab in Oslo or Safran Sensing Technologies in Horten.
Companies in the sensor industry tend to be young and growing. Many are at an early stage of commercialisation and are not yet profitable. In 2021, around one-third of these companies made a profit.
Read the full Menon report here.