Teltonika signed €14M agreement with Taiwanese partners; Oxipit and Solitek starting cooperation
Teltonika signed a €14 million technological cooperation agreement with Taiwan’s Industrial Technology Research Institute (ITRI), which will help them to start a semiconductor chip industry in Lithuania. Two more Lithuanian startups are also starting cooperation with Taiwan – Oxipit received €3.5 million investment, and €8 million loan was confirmed for Solitek.
Acquiring licences for semiconductor chip technologies
The agreement entitles Teltonika to obtain licences for semiconductor chip manufacturing technologies and devices developed by ITRI. It also ensures that the company group will get assistance in preparing detailed plans and engineering training for employees.
“This is the beginning of the 21st century gold industry and a new phase of our economy, where we will focus on world-changing technologies. We have the potential to establish ourselves in the global semiconductor market, and this partnership with Taiwan will help Lithuania to move forward rapidly, match the world’s strongest players and realise its ambitious goals,” said Aušrinė Armonaitė, Minister of the Economy and Innovation.
“This is a truly historic event for Lithuania, as it will be the largest ITRI cooperation project with a foreign country in its 50-year history. I am thankful to the Government of Taiwan for its confidence in us and to the Lithuanian politicians for their support in the negotiations. This agreement proves that we are reliable partners capable of developing such complex projects. I believe that by implementing the planned works, we will help Lithuania to break through alongside the most advanced countries in the world,” said Arvydas Paukštys, founder and president of the Teltonika company group.
Developing technologies for the renewable energy industry
According to A. Paukštys, ITRI will provide technologies that are widely used today in power electronics, producing energy management devices such as solar inverters, electric vehicle chargers and other home and industrial electronics.
“When the idea of producing semiconductor chips in Lithuania was born a few years ago, we initially considered slightly different, more traditional technologies. However, after a thorough market analysis, we decided to develop niche semiconductor technologies used in renewable energy, electric vehicles or other industrial power module solutions. In addition, we will offer semiconductor chip design, assembly and testing services to our customers,” said the president of the company group.
Detailed project plans are yet to be announced
Thanks to the newly established relations between Lithuania and Taiwan on common values, the technologies developed in Taiwan and the knowledge of their experts will be used in preparation for the launch of a semiconductor chip industry in Lithuania.
The contract between ITRI and Teltonika is worth €14 million, of which €10 million will come from Taiwan’s Ministry of Foreign Affairs under a bilateral cooperation plan between Lithuanian and Taiwanese governments and another €4 million from the Teltonika company group. The project’s total value will be finalised after more detailed calculations during the preparatory phase and after assessing the investment needed for the installation of infrastructure and the construction of factories for the semiconductor chip industry.
The semiconductor industry in Lithuania will encompass such new activities as semiconductor chip design, fabrication, assembly and testing, and power module manufacturing. We will soon start preparing detailed plans for these projects, which, according to initial estimates, could take around a couple of years, until 2025.
After completing the project plans and estimating the necessary investments, the construction of the semiconductor chip industry facilities could take approximately two more years. According to the technological cooperation agreement between Teltonika and ITRI, the projects necessary for initiating the semiconductor chip industry in Lithuania will be completed by 2027.
Investment for Oxipit
The second investment by Taiwanese fund management company Taiwania Capital was attracted by Oxipit, a startup developing Lithuanian artificial intelligence solutions for radiology.
Taiwania Capital will invest €3.5 million in the company.
“In the past year, we have received regulatory approval to use artificial intelligence to provide radiologists with the results without the need for a doctor to confirm. This investment will allow us to expand the team, the number of customers and grow,” Gediminas Pekšys, the head of the startup, told reporters on Wednesday.
G. Pekšys said to news portal vz.lt that the company plans to attract a total of €4.8 million at this stage and from other investors, including Practica Capital. The company is also considering an additional round after a few months.
This is the second investment of Taiwania Capital in Lithuania. At the end of last year, the fund management company announced about €3.5 million capital injection into the Lithuanian laser production company “Litilit”.
Loan to Solitek
An €8 million loan to SoliTek, one of the largest solar module manufacturers in Northern Europe, was also confirmed last week. A credit line worth 8 million euros is being opened for the company at the State Bank of Taiwan.
This loan is the first of a 1 billion euro Taiwanese loan fund for Eastern and Central Europe.