Lithuania will create its own chip production – Taiwan will help it in this
The Teltonika technology company intends to build a semiconductor manufacturing plant in Lithuania. It is expected that it will be created with the support of Taiwanese colleagues and will use Taiwanese technology, and will be operational as early as 2027. The Lithuanian authorities have announced the country’s intention to become a major player in the semiconductor market.
As reported by Reuters, Taiwan has promised to help Lithuania withstand China’s economic pressure – it began after Lithuania, contrary to a tacitly accepted practice almost everywhere in the world, effectively allowed Taiwan to open an embassy in Vilnius in November 2021.
According to Teltonika, the decision to start production in 2027 is part of a cooperation plan with Taiwan’s Industrial Technology Research Institute (ITRI), a project valued at 14 million euros, including a 10 million grant from Taiwan’s Ministry of Foreign Affairs. The possibility of cooperation between Taiwan and the countries of Eastern Europe, including Lithuania, in the issue of microchips was discussed at the end of 2021.
According to representatives of the Lithuanian authorities, Taiwan will help Lithuania move forward quickly, meet the strongest global players and achieve ambitious goals. However, so far, the amount of funding hardly allows us to seriously claim a leading position in the semiconductor industry.
In response to Lithuania’s actions, China officially lowered the level of diplomatic relations, effectively stopped trade with Lithuania and put pressure on multinational companies to exclude their supply chains from the European country. In response, the European Union challenged China’s actions through the World Trade Organization (WTO), accusing China of discriminatory trade practices against its member.
One way or another, the volume of trade between Lithuania and Taiwan increased by a third in 2022. In addition to the agreement on semiconductors, other agreements were concluded. Solar power cell module manufacturer SoliTek has announced that it has received an 8 million euro loan from Taiwan’s Eximbank, and biotech startup Oxipit will receive a 3.5 million euro investment from the Taiwania Capital fund. Whether such investments will help fight against China’s boycott of the country will be visible in the coming years.
