Latvia, Lithuania, and Estonia have agreed to work together to strengthen the Baltic-Nordic region’s role within the European semiconductor market.

The trio have signed a Memorandum of Understanding (MoU) focused on three areas of collaboration: boosting innovation, promoting research and education through shared training programs, and connecting startups and SMEs to pilot lines and R&D efforts under the EU’s Chips Joint Undertaking (Chips JU) initiative.

The MoU was signed during the Techritory Forum, which took place this week in Riga, Latvia. Experts from the Riga Technical University (RTU) and University of Latvia, Lithuania’s Center for Physical Sciences and Technology (FTMC), and Estonia’s Metrosert Applied Research Centre will work together under the agreement.

According to data published alongside the announcement, the semiconductor markets in Estonia and Lithuania are expected to grow by around five percent annually between 2023 and 2028, increasing from a combined total of around €41 million ($47.6m) to €53 million ($61.5m). Meanwhile, Latvia’s semiconductor exports are forecast to grow by about six percent per year from 2021 to 2026.

By signing the agreement, the nations will support the EU’s goal of doubling its semiconductor capacity by 2030, an aim set out in the European Chips Act. The three countries will now submit a joint HORIZON-CSA application, mapping the region’s semiconductor ecosystem and laying the groundwork for the development of a joint strategy for a Baltic-Nordic semiconductor alliance.

“This week in Riga, we are bringing together representatives from the national chip competence centers of all three countries to agree on the future directions of this cooperation,” said RTU vice-rector for innovation, Liene Briede. “This partnership will give new momentum to the region’s microchip ecosystem – benefiting small and medium-sized enterprises, startups, and research institutions alike. Moreover, it is an excellent opportunity to strengthen the region’s role in global supply chains.”

The MoU follows the signing of a Latvian Chip Memorandum in 2022, which aimed to boost the chip ecosystem in Latvia. That memorandum resulted in the establishment of the Latvian Chip Competence Centre (LCCC) in March 2025, one of 27 centers that exist across 25 European countries.