Lithuania's government has pledged to resolve the issues that have stalled a high-tech industrial park project aimed at fostering closer ties with Taiwan in the semiconductor sector. The project, which was to be built at the Teltonika High-Tech Hill park, faced delays due to unresolved land use and energy supply issues.

Last Friday, Arvydas Paukštys, a major shareholder of Teltonika, took to LinkedIn to announce that construction on the project had been halted due to these obstacles. However, following a meeting between government officials and Paukštys on Monday, Lithuanian Prime Minister Ingrida Šimonytė instructed government agencies to support Teltonika in moving the high-tech park project forward.

After the meeting, Paukštys stated that the project, originally slated for completion in 2028, is now expected to be delayed by two to three years, with completion potentially pushed back to 2032 if no further issues arise.

Ausrine Armonaite, Lithuania's Minister of Economy and Innovation, echoed Paukštys' sentiments, emphasizing the need for the government to collaborate with 18 institutions, including the military, to resolve the land use issues. Armonaite noted that the government has addressed the technical challenges related to the project and is currently working on the necessary paperwork to move forward.

Paukštys had previously stated in his LinkedIn post that Teltonika was unable to even begin designing the 55-hectare industrial park building, which was expected to house 10 major facilities, due to a lack of clarity on the technical requirements of the park.

In January of last year, Taiwan's Industrial Technology Research Institute (ITRI) signed a €14 million (US$14.77 million) contract with Teltonika to establish semiconductor production capabilities at the Lithuanian park. This agreement was part of Taiwan's efforts to help the Baltic nation develop the capacity to produce 8-inch wafers.

Teltonika, designated as part of Lithuania's "national chip team," is a major supplier of Internet of Things devices in Lithuania. The Lithuanian National Radio and Television reported last week that Paukštys had accused the Lithuanian government of blocking a €3.5 billion investment in the project.

In his LinkedIn post, the Lithuanian businessman claimed that halting the investment would prevent the creation of 6,000 new jobs and result in billions of euros in lost GDP for the country.

Following news of the construction halt, Taiwan's Ministry of Foreign Affairs stated on Saturday that semiconductor development cooperation with Lithuania would not be affected.