A Lithuanian electronics company is hoping to become the country’s first producer of semiconductors, thanks to a new partnership with Taiwan. Tech firm Teltonika aims to achieve domestic manufactuing capabilities by 2027 by working with Taiwan's Industrial Technology Research Institute.

The chipmaking cooperation comes amid deepening tensions between the European country and China. The two countries downgraded their diplomatic relations in 2021, and Vilnius has also lodged a complaint over China’s trade practices.

Lithuanian Economy and Innovation Minister Ausrine Armonaite had first outlined ambitions for the European Union member to become a major global player in the sector earlier this year.

"This partnership with Taiwan will help Lithuania to move forward rapidly, match the world's strongest players and realise its ambitious goals," she had said in January this year.

Semiconductors, or microchips, are components found in electronic devices such as phones and drones. The most sophisticated chips come from Taiwan, whose expertise is sought by many countries.