HELSINKI - Chinese semiconductor maker National Silicon Industry Group via Finnish subsidiary Okmetic will invest nearly 400 million euros ($422 million) to build a silicon wafer production facility in Finland, Okmetic said on Tuesday.
"With silicon wafer demand surging due to the proliferation of electronic components, the investment helps the company meet the growing demand of customers," it said in a statement.
Silicon wafers are needed in the manufacture of micro-electro-mechanical systems and sensors as well as radio frequency and power applications.
In 2022, the global semiconductor market is expected to surpass $600 billion for the first time, driven by technologies such as 5G, artificial intelligence, autonomous vehicles and the Internet of Things, the company said.
"With the high growth rate, component shortage has posed a challenge for the entire industry," it said.
Okmetic said the investment would more than double its production capacity and create over 500 jobs, with construction expected to begin by early 2023 and production to begin in 2025.
Okmetic has been part of the NSIG since 2016 and in 2021 its net sales amounted to 128 million euros.
($1 = 0.9480 euros)