Teltonika's plans to construct a major Taiwanese-backed semiconductor fab in Vilnius, Lithuania, have hit significant delays. Arvydas Paukstys, founder and president of Teltonika, announced on November 15 that construction has been halted due to challenges, including insufficient power supply until 2027 and a prolonged land rezoning process. These obstacles affect a planned 55-hectare high-tech park, initially aiming for completion by 2028.

Following Paukstys's announcement, the Lithuanian government emphasized its commitment to resolving the issues and keeping the project on track. On November 18, Lithuanian Prime Minister Ingrida Simonyte met with Paukstys to discuss the project's future. After the meeting, Paukstys stated that the timeline for the high-tech park had been extended by two to three years, with a new target completion date set for 2032.

The delays stem primarily from bureaucratic and regulatory hurdles. According to Paukstys, necessary infrastructure updates and land use changes have been slow-moving due to coordination with multiple institutions, including military bodies. Lithuanian Minister of Economy and Innovation, Ausrine Armonaite, confirmed that the project requires coordination across 18 agencies, which has slowed progress. However, she assured that the technical conditions have been established and that planning is ongoing.

Despite the setbacks, Teltonika remains hopeful that construction will eventually move forward. Paukstys indicated that while the project has been delayed, it has not been abandoned. Once the rezoning is approved, Teltonika plans to proceed with the design phase for the semiconductor facility.

The Taiwan Ministry of Foreign Affairs (MOFA) has reiterated its support for the partnership, indicating that cooperation projects between Taiwan and Lithuania are continuing as planned. In early 2023, Taiwan's Industrial Technology Research Institute signed a €14 million agreement with Teltonika to establish semiconductor production capabilities in Lithuania, highlighting the strategic importance of the collaboration.

Economy Minister Armonaitė noted that the existing contract with a major investor is valid until 2042, and Teltonika must meet certain milestones, including job creation targets, by 2027. She remains optimistic that, with further government intervention at the prime ministerial or specialized committee level, the project can overcome current challenges and continue progressing.

The planned semiconductor fab is part of Teltonika's larger vision to establish a high-tech park in Vilnius, intended to bolster Lithuania's position in the semiconductor market. However, ongoing bureaucratic hurdles will need to be navigated to meet the new deadlines and ensure the project's success.