IC Cooperation with Lithuania Faces Challenges Amid Factory Construction Halt.

Taipei: Taiwan's Ministry of Foreign Affairs (MOFA) disclosed on Saturday that while the construction of a chip factory in partnership with Taiwan in Lithuania's capital has been halted, cooperation in semiconductor development between the two nations will continue. The halt stems from a shortage of electricity and unresolved issues related to land conversion for industrial use, affecting the 10 investment projects planned, including the Taiwan-Lithuania partnership. According to Focus Taiwan, Teltonika, a technology group in Lithuania, has stopped the construction of an industrial park in Vilnius due to these challenges. Arvydas Paukštys, the main shareholder of Teltonika, announced on social media that the termination of the contract for purchasing design services from Taiwan is inevitable due to the construction halt. This comes after Taiwan's Industrial Technology Research Institute (ITRI) had signed a pound 14 million agreement with Teltonika in January 2023 to boost chip production capacity in Lithuani a. Despite these setbacks, MOFA remains optimistic about continuing the semiconductor partnership. Meanwhile, ITRI has not provided immediate comments on the situation. The industrial park's construction was initially planned for completion by 2028, but Paukštys confirmed that all investments in the 55-hectare Teltonika High-Tech Hill Park are now on hold. Citing ELTA, a Lithuanian news agency, Paukštys mentioned that new semiconductor chip industry plans in Lithuania have been scrapped due to the contract termination. In his LinkedIn post, he expressed concerns over lost opportunities, including 6,000 potential jobs and billions in domestic gross product for Lithuania. Paukštys highlighted challenges in securing the necessary 63 megawatts of electricity, as a planned power distribution center's construction was delayed. Despite assurances from the Minister of Energy, LITGRID, the electricity transmission network operator, prioritized other projects over Teltonika's investments. Under agreements with the Ministry of Economy, Teltonika leased state land for chip factories and a design center but faced delays in converting the land for industrial use. Paukštys indicated that this delay hampers building designs and securing necessary approvals, risking the project's completion by 2027. He accused the Lithuanian government of hindering pound 3.5 billion in business investments.