Taiwan to Assist Lithuania in Domestic Semiconductor Production

Teltonika, a Lithuanian technology firm, said it plans to begin domestic semiconductor production in 2027 using Taiwanese technology, as a minister outlined ambitions for the EU state to become a major global player in the sector.

Taiwan has promised to assist Lithuania in withstanding Chinese economic pressure since the Baltic country allowed Taiwan to open a de facto embassy in Vilnius in November 2021.

Teltonika stated that the 2027 production target was part of a 14 million euro cooperation agreement with Taiwan's Industrial Technology Research Institute, which included a 10 million euro grant from Taiwan's foreign ministry.

"This partnership with Taiwan will help Lithuania to move forward rapidly, match the world's strongest players and realise its ambitious goals," Economy and Innovation Minister Ausrine Armonaite said.

After the opening of the representative office in Vilnius, China downgraded diplomatic ties with Lithuania, disrupted trade, and pressured multinational corporations to remove it from their supply chains.

Since then, the European Union has filed a WTO complaint against China, accusing it of discriminatory trade practises against a member state.

Lithuania's trade with Taiwan increased by roughly one-third in 2022.

In other recent bilateral agreements, solar power module manufacturer SoliTek announced an 8 million euro credit from Taiwan's Eximbank on Wednesday, and biotech startup Oxipit received a 3.5 million euro investment from venture fund Taiwania Capital, according to sources.