TAIPEI (Taiwan News) – Lithuanian electronics manufacturer Teltonika IoT Group is establishing closer ties with Taiwan while preparing to launch its semiconductor effort, reports said Tuesday (July 18).

While the company has been active for many years in various parts of the electronics industry, its foray into semiconductors is only recent, CNA reported. In January, Teltonika signed an agreement with Taiwan’s Industrial Technology Research Institute (ITRI) valued at NT$480 million (US$15.49 million).

ITRI will provide Teltonika with technological assistance and train its staff, according to the accord. Teltonika will be ready to produce chips in 2027, and the company said it wants to be part of the European Union's effort to hold a 20% share of the world’s semiconductor production by 2030.

The company’s move to explore semiconductor production was based on the need of its divisions for chips, said Ernestas Zdaniauskis, Teltonika's vice president of innovation and business development. He told CNA that Teltonika also saw the establishment of a reliable supply chain as a key requirement.

The company evaluated possible partners for a long time, but it was not until 2021 when relations between Lithuania and Taiwan grew closer that it actively sought to partner with the country, Zdaniauskis said. Teltonika wanted to play a part in several aspects of the semiconductor industry, from design to packaging.

Taiwan’s representative in Lithuania, Eric Huang (黃鈞耀), sees Lithuania as a bridge linking Taiwan’s semiconductor sector with chip design in the EU, CNA reported. Taiwan is not looking to gain control over Lithuanian businesses but rather wants to form partnerships.