Czech Republic at the heart of the chip world: an opportunity too big to miss

Taiwan dominates chip production. Czechia supplies the technologies without which those chips could not be made. Lukáš Martin of the Confederation of Industry of the Czech Republic explains exactly where Czech industrial tradition intersects with Taiwanese supply chains — and why the TSMC project in Dresden opens new doors for companies across Moravia.

Which regions of the world currently offer the greatest opportunities for Czech industrial companies according to the Confederation of Industry, and where do you see the highest potential for developing new technological partnerships?

The European Union remains a key market for Czech companies, providing a natural environment for exports and industrial cooperation. At the same time, however, the importance of technologically advanced economies in South East Asia is immense. It is there that we see great potential for new technological partnerships, for example in the fields of electronics, semiconductors, and advanced manufacturing.

In many of these sectors, the centre of research, development and industrial growth is increasingly shifting towards South East and East Asia. Companies that are not present in this dynamic ecosystem risk missing the latest technological trends, innovation cycles and supply-chain developments, and may gradually fall behind in global competition. Active engagement with partners in the region is therefore essential for maintaining technological relevance and long-term competitiveness.

Taiwan is one of the world’s leading technology hubs, particularly in electronics and semiconductors. How does Czech industry perceive the potential for cooperation with Taiwanese technology companies?

Taiwan is perceived by Czech industry as one of the most important technological partners in Asia. Czech companies have strong competencies in related industry areas, which creates opportunities for broader industrial and technological cooperation. Some examples of companies already active in Taiwan include LINET (hospital beds), MEDIATRADE (pacemakers), and GENERI BIOTECH (molecular biology and genetics). Another example is DG Solutions, a Czech company developing advanced technologies and components for the semiconductor and AI industries, whose innovations are increasingly finding their way into global high-tech supply chains.

The Confederation of Industry organises every year a meeting of the Czech-Taiwan Business Council (founded in 1998). The Council supports bilateral trade and investment cooperation between companies in both countries, with an emphasis on small and medium-sized enterprises and cooperation with higher added value. In recent years, it has also focused on cooperation in the field of applied research and technology transfer. The main discussion topics typically include the latest industry trends, such as smart cities, green energy, ICT, innovation, precision engineering, and biotechnology.

Taiwan is a global leader in semiconductor technology. Does the Confederation of Industry see room for greater involvement of Czech companies or research institutions in Taiwanese technology supply chains?

Yes, definitely. The Czech Republic has a strong tradition in areas that are important for the semiconductor industry. Czech companies can be partners, for example, in the supply of specialized production equipment, testing technologies, or software for industrial applications.

Czech research institutions can also play an important role in joint technology projects. We also see promising developments in Czech companies working on advanced technologies for AI and semiconductor manufacturing, which are increasingly finding applications in global high-tech supply chains.

Has the Confederation of Industry observed growing interest among Taiwanese technology companies in investing in the Czech Republic – for example in research, development, or production capacity?

In recent years, we have seen growing interest among Taiwanese technology companies in cooperating with European partners. The Czech Republic is perceived as a stable industrial economy with a skilled workforce and a strong industrial base. Our companies and organisations  have also established a functioning cooperation with Taiwanese partners in many areas, such as the areas of research and development, electronics, advanced manufacturing, and the automotive industry. 

Taiwanese TSMC is building its first European chip factory in Dresden. The project is part of the EU‘s strategy to increase Europe‘s share of chip production to 20% by 2030. The plan will bring further opportunities for Czech companies.

Taiwanese Analog Bits, which is part of the manufacturing processes of companies such as TSMC, has already opened a development center in Prague. Topco Scientific and TeaLa want to turn Czech Republic into an industrial base as partners in the TSMC project. CTi Cable in Klecany, located in the P3 industrial park, will manufacture cables for fast data transfer, typically for HDMI, USB, Ethernet, or DisplayPort.

The Czech Republic has a strong tradition in machine tools and manufacturing technologies. What specific opportunities does the Confederation of Industry see for Czech machinery or automation solution providers in the Taiwanese market?

Taiwanese industry creates demand for modern manufacturing technologies. Czech companies can offer solutions in the areas of precision machining, automation and specialized production lines. Interesting opportunities are also emerging in the areas of commercial drone applications, security software and aerospace.

The Czech semiconductor chain is particularly strong in the supply of machinery and equipment for the production of integrated circuits.

Approximately one third of the world‘s electron microscopes are supplied from Czechia, with a particularly strong concentration of development and production capacities in Brno, which has become one of the key European centres for electron microscopy and semiconductor-related technologies. These microscopes are used in the semiconductor chain mainly for chip quality control and for advanced analysis of semiconductor materials and components focused on the development of new technological solutions. For example, the Brno-based company Thermo Fisher Scientific supplies microscopes to TSMC, Intel, Apple, Samsung, and Nvidia. In addition to electron microscopes, companies operating in Czechia are also able to supply optical components for lithographic machines and other specialized machines.

What role can Czech universities, research centres, and technology parks play in developing Czech-Taiwanesetechnological cooperation?

Universities and research institutions can play a key role as a bridge between industry and technological development. Joint research projects, student and researcher exchanges, and the creation of joint research laboratories are important. A project financed by Taiwan (Supply Chain Resilience Centre), which is overseen by Charles University deals with various mapping and non-technological issues. The project under the Zlín and South Moravian regions - the National Competence Centre for Semiconductors focuses on technological issues. We see great potential in the field of advanced manufacturing and automation linked to the digitization of industry.

What role does the Confederation of Industry believe the Czech Republic can play in European technological and industrial supply chains – for example in advanced manufacturing, mechanical engineering, electronics, or semiconductor technologies?

The Czech Republic has the potential to become one of Europe‘s key centres of advanced manufacturing. Thanks to its strong tradition in mechanical engineering, electrical engineering, and the automotive industry, it already plays a significant role in European industrial supply chains. In the future, it can further strengthen its position, particularly in the areas of technologically demanding manufacturing, industrial equipment, electronics, and industrial software development.

If the Confederation of Industry were to name one field or technology that could most strengthen the international position of Czech industry in the coming years, what would it be?

We see great potential in the field of advanced manufacturing, automation and artificial intelligence linked to the digitization of industry. It is precisely the combination of traditionally strong Czech engineering with modern technologies including AI applications in industrial production, robotics and data driven manufacturing that can help Czech industry further strengthen its international competitiveness. The development of new AI infrastructure in Czechia, including the planned AI Factory in Ostrava, can further accelerate innovation and support the deployment of advanced digital solutions across industry.