Taiwan–Czech Republic Industrial and Technology Cooperation: Current Progress and Future Outlook
Relations between Taiwan and the Czech Republic have in recent years been evolving far beyond traditional trade. Alongside investment and industrial cooperation, technology, research, and sectors that will shape the future of European industry are coming increasingly to the forefront. Topics such as semiconductors, artificial intelligence, and advanced manufacturing are gaining prominence, together with the question of what role both countries can play within this ecosystem. It is precisely here that a partnership is emerging with the potential to go beyond regional significance and become part of broader global technology supply chains.
Bilateral Trade and Investment
Taiwan and the Czech Republic have maintained a long-standing economic and technological partnership, with Taiwanese businesses first investing in the Czech Republic in the early 2000s. Over the past two decades, bilateral ties have deepened. In 2025, total trade reached USD 2.14 billion, making the Czech Republic Taiwan’s second-largest trading partner in Central and Eastern Europe. Taiwanese investments, mainly in information and communications technology, amount to approximately USD 221 million, creating around 24,000 local jobs. These investments generate employment, facilitate technology transfer, and strengthen the long-term industrial partnership between the two countries. Direct air connectivity has further facilitated cooperation: China Airlines inaugurated the first Taipei–Prague direct flights in 2023, and STARLUX Airlines will start operating three weekly flights from August, with a fourth flight added in October, significantly enhancing business travel and people-to-people exchanges.
Government-Supported Projects
Government-backed initiatives have further supported industrial cooperation. The Central and Eastern European Investment Fund (CEE Investment Fund) supported four projects in the Czech Republic totaling €19.6 million, while the Central and Eastern European Credit Fund (CEE Credit Fund) assisted four additional projects with €75.16 million in capital. These measures have strengthened industrial links, enabled Czech businesses to access financing, and supported the implementation of high-value projects efficiently.
Academic and Research Collaboration
Academic collaboration continues to expand. Eleven Czech universities across thirteen fields have partnered with Taiwanese institutions, providing Czech students and researchers with hands-on experience in Taiwan’s advanced technological and research environment. To date, eighty-five Czech students have studied or trained in Taiwan in sectors such as semiconductors, robotics, and artificial intelligence. Cooperation mechanisms in the semiconductor sector underscore the strategic importance of high-tech collaboration, combining Taiwan’s global semiconductor leadership with Czech precision manufacturing expertise.
Future Strategic Collaboration
According to Ambassador Remus Li-Kuo Chen, Taiwan–Czech cooperation can focus on artificial intelligence, unmanned aerial vehicles (UAVs) and aerospace, laser technology, and electron microscopy. “Taiwan’s supply chain advantages in semiconductors, electronics, and precision components complement Czech industrial capabilities,” the Ambassador said. “This synergy creates opportunities for joint projects, technology transfers, and high-value product development.”
Under its new Economic Strategy, the Czech Republic is committed to ensuring affordable AI infrastructure for scientific institutions, government authorities, start-ups, and SMEs. Taiwan can support the country in establishing a computing power hub. Simultaneously, the Czech Republic is Taiwan’s largest export market for UAVs and possesses its own technological strengths in UAV development. This opens opportunities for both countries to become strategic industrial partners in the Ukrainian and international UAV markets, including joint research and development. This positions the Czech Republic as a key partner in Taiwan’s “non-red supply chain” strategy and a critical node in regional technology and industrial planning.
Overall, Taiwan–Czech cooperation demonstrates a clear trend toward strategic high-tech engagement. Continued government support, academic exchanges, investment initiatives, and improved connectivity enable both countries to expand collaboration in AI, aerospace, and other advanced sectors. This partnership fosters bilateral economic growth and strengthens both nations’ roles in broader European and global innovation networks.
The coming years will be crucial in translating these foundations into tangible outcomes, including increased production capacity, technology transfer, and joint research outputs. By pursuing shared goals in high-value industries, Taiwan and the Czech Republic provide a model of how small and medium-sized nations can leverage complementary capabilities to compete globally.
In conclusion, Taiwan–Czech industrial and technological collaboration has evolved from early investments and student exchanges to a forward-looking framework encompassing high-tech sectors, strategic supply chains, and academic cooperation. The foundation built over decades, supported by active government facilitation and private sector engagement, positions both countries for innovation-driven growth. With focused efforts in AI, UAVs and aerospace, lasers, and electron microscopy, future cooperation promises mutual benefits, stronger transnational ties, and enhanced global competitiveness.