TAIPEI (Taiwan News) — Founder and president of Lithuania’s Teltonika Arvydas Paukstys said Friday (Nov. 15) that the construction of a Taiwanese semiconductor fab in Vilnius will be halted.

Paukstys said that the main reasons for shelving the 55-hectare plan were the lack of adequate power supply before 2027 and the lengthy process of rezoning the land for industrial use, per Liberty Times.

Paukstys recently mentioned on LinkedIn that the Lithuanian government was obstructing a 3.5 billion euros (NT$120 billion) business investment.

The Taiwan Ministry of Foreign Affairs (MOFA) clarified that semiconductor cooperation projects between Taiwan and Lithuania will continue as planned, per CNA.

In January 2023, Taiwan’s Industrial Technology Research Institute signed a 14 million euro agreement with Teltonika to collaborate on establishing semiconductor production capacity in Lithuania.