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From Taiwan to Czechia: What Semiconductor Companies Should Check Before Choosing a Location

Czechia offers Taiwanese semiconductor companies several distinct entry points: Prague for coordination, Brno for chip design and research, and northern Czechia for industrial links to Silicon Saxony.

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Predrag Pavič

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Czechia is not a single-location semiconductor market. Prague, Brno and northern Czechia offer different combinations of institutions, research, suppliers, infrastructure and access to neighbouring European clusters. Taiwanese companies should choose according to the function they need to build—not according to the best-known city name.

Cooperation between Taiwan and Czechia is moving from diplomatic visibility to practical projects. Czech organisations presented the local ecosystem at SEMICON Taiwan 2026, while CzechInvest, universities, industry groups and regional partners continue to build links with Taiwanese companies.

Czechia’s semiconductor sector comprises approximately 80 companies and more than 11,000 specialists, according to CzechInvest. Its strengths include chip design, power electronics, electron microscopy, advanced materials, nanotechnology and industrial production.

This does not make Czechia a smaller version of Taiwan. Its value is different: it can provide a Central European base for research, engineering, specialised production, customer access and cooperation with the wider European semiconductor supply chain.

For a Taiwanese company considering Czechia, the first question should therefore not be “Prague or Brno?” It should be: what function do we need the Czech operation to perform?

Czechia offers more than one semiconductor location

The Czech ecosystem is distributed across several regions. That can initially look less convenient than a single concentrated cluster. In practice, it allows companies to match their location to the type of activity they want to establish.

A simplified view is:

LocationStrongest potential roleWhat to examine
Prague and Central Bohemiaheadquarters, commercial coordination, public institutions, international accessdecision-makers, customers, office costs, logistics and access to partners
Brno and South Moraviachip design, R&D, engineering, universities and cybersecurityspecialist talent, research cooperation, laboratories and growth capacity
Northern Czechiamaterials, industrial services, logistics and links to Silicon Saxonysite availability, cross-border supply chains, utilities and transport
Other Czech regionsspecialised suppliers, production and technical universitiesexact competencies, workforce, incentives and customer proximity

This table is a starting point, not a site-selection decision. Two companies in the same sector may require completely different locations because one needs ten chip designers while another needs chemical logistics, testing infrastructure or customer support.

Prague: coordination, institutions and a European-facing base

Prague is the most visible entry point for foreign investors. It offers international transport, professional services, public institutions, corporate customers and a large pool of multilingual business talent.

For a Taiwanese semiconductor company, Prague can make sense for:

  • a representative or commercial office,
  • European management and partner coordination,
  • contact with public institutions and investment agencies,
  • customer development,
  • recruitment for business and administrative roles,
  • coordination with operations elsewhere in Czechia or Central Europe.

Taiwan has also strengthened its institutional presence in Prague, while CzechInvest operates a foreign office in Taipei. These channels can help a company understand the market and identify relevant contacts, but they do not replace commercial validation, technical due diligence or a local operating plan.

Prague is not automatically the best place for an engineering centre or industrial operation. Its value is strongest when proximity to decision-makers, international connections and coordination matter more than production space or a highly specialised regional talent pool.

Brno: chip design, research and engineering

Brno is one of the most important Czech locations for semiconductor research and chip design. The city combines Brno University of Technology, Masaryk University, research infrastructure, technology companies and the Czech Semiconductor Centre.

The Czech Semiconductor Centre was launched in Brno to connect academia and industry, support innovation and help companies with areas such as design, prototyping and access to European chip initiatives.

Brno may be suitable for:

  • integrated-circuit and IP design,
  • applied research and engineering,
  • semiconductor cybersecurity,
  • cooperation with universities,
  • recruitment of technical graduates,
  • prototype development and testing,
  • teams working on power electronics, AI hardware or specialised instrumentation.

Taiwanese company Jmem Technology illustrates this direction. CzechInvest reported in April 2026 that the company had opened its first European office in Prague and was progressively establishing a European R&D and engineering centre in Brno focused on semiconductor security, post-quantum cryptography and hardware-based trust.

One case does not prove that Brno is right for every Taiwanese technology company. It does show that a Czech entry can be split by function: business coordination in Prague and technical development in Brno.

Northern Czechia: a bridge towards Silicon Saxony

Northern Czechia offers a different proposition. Its value lies in industrial land, logistics, advanced materials, precision engineering and proximity to the semiconductor ecosystem around Dresden.

Parts of northern Czechia are less than 100 kilometres from Silicon Saxony. For companies supplying chemicals, equipment, cleanroom services, optics, industrial components or logistics, the relevant market may therefore extend across the Czech-German border.

Czech-Taiwanese business initiatives have highlighted regional capabilities including:

  • specialty chemicals and semiconductor logistics,
  • precision optics and crystal technologies,
  • nanotechnology,
  • cleanroom-related services,
  • industrial and transport infrastructure,
  • access to customers in Saxony and other European markets.

A current example is Taiwanese company i-TRANS Global. CzechInvest reported that it is considering a European semiconductor chemical logistics hub in the Ústí Region. The proposed location is intended to support customers not only in Czechia, but also in Saxony, Austria, the Netherlands and other European markets.

This is an important distinction. A Czech location does not have to serve only the Czech domestic market. It can be selected as part of a wider Central European supply-chain design.

Czechia should be evaluated as part of Central Europe

A Taiwanese company may be tempted to compare Czechia only with Poland, Hungary or Slovakia. Semiconductor projects require a wider map.

Depending on the activity, the relevant network can include:

  • Silicon Saxony around Dresden,
  • automotive and electronics production across Czechia, Germany, Slovakia and Poland,
  • research partners in Brno, Prague and other Czech university cities,
  • European customers in industrial automation, mobility, defence and medical technology,
  • EU programmes and semiconductor competence centres.

The practical question is not simply where labour or property is cheapest. It is where the company can build a reliable combination of talent, infrastructure, customers, suppliers and institutional support.

Seven questions to answer before choosing a Czech location

1. What will the Czech operation actually do?

A sales office, R&D team, logistics centre and manufacturing plant require different people, permits, buildings and partners. Define the operating function before comparing cities.

2. Which skills are genuinely scarce?

Do not rely on a national average for technical employment. Map the exact profiles required, the universities and companies that employ them, salary expectations and realistic recruitment time.

3. Which customers and suppliers must be physically close?

For some projects, access to Prague matters. For others, distance to Dresden, an automotive plant, a university laboratory or a specialised supplier is more important.

4. What infrastructure is non-negotiable?

Semiconductor-related operations may depend on stable energy, water, cleanroom capability, chemical handling, security, transport or specialised waste management. A suitable building on paper may fail the technical test.

5. Which certifications and approvals come before revenue?

Opening a Czech company does not automatically create access to European supply chains. Customers may require international certification, documented quality systems, validation and supplier approval before the first meaningful order.

6. Should the company begin with one function and add others later?

A staged entry can reduce risk. A company might start with partner development and a small technical team, then expand into logistics, testing or production after validating demand and recruitment.

7. Who will localise the commercial operation?

Technical excellence alone does not create a Czech market presence. The company still needs clear Czech and English communication, local recruitment materials, partner mapping, a credible website, customer support and someone responsible for the first commercial relationships.

Incentives help, but they do not build the operation

Investment incentives, public agencies and research programmes can improve a project. They cannot replace the operating fundamentals.

Before treating support as the deciding factor, a company should understand:

  • whether the planned activity and costs are eligible,
  • which commitments accompany the support,
  • whether the project would still make business sense without the maximum incentive,
  • how long approvals may take,
  • which local entity will employ people, sign contracts and own the investment,
  • how the Czech team will connect to the Taiwanese headquarters.

The strongest project is not the one with the largest headline incentive. It is the one that can recruit, operate, sell and expand after the launch announcement.

A practical entry sequence

For many Taiwanese semiconductor and deep-tech companies, a proportionate sequence could look like this:

  1. Define the European commercial and technical objective.
  2. Map customers, partners and competing locations in Central Europe.
  3. Compare Prague, Brno and relevant industrial regions by function.
  4. Validate specialist recruitment before committing to a large team.
  5. Check buildings and infrastructure against technical requirements.
  6. Choose the Czech legal and employment setup.
  7. Prepare Czech and English communication for partners, candidates and institutions.
  8. Start with a controlled first phase and measurable milestones.
  9. Expand only after the initial assumptions have been tested.

This approach is less dramatic than announcing a major European hub at the start. It is also more likely to produce a functioning operation.

What SEMICON Taiwan changes—and what it does not

The Czech presence at SEMICON Taiwan is useful because it gives Taiwanese companies direct access to institutions, universities and industry representatives. It also makes the Czech ecosystem easier to see as a connected offer rather than a collection of isolated organisations.

However, a trade-fair meeting is only the beginning. The difficult work follows:

  • deciding which Czech location fits the planned function,
  • verifying technical and workforce assumptions,
  • identifying reliable local partners,
  • establishing the legal and operational structure,
  • adapting communication to Czech customers and employees,
  • building a realistic implementation timetable.

That is where an investment idea becomes a Czech operation.

The main conclusion

Czechia can be valuable to Taiwanese semiconductor companies precisely because it offers several different entry points.

Prague provides coordination, institutions and international access. Brno offers chip-design, research and engineering capabilities. Northern Czechia connects industrial assets and specialised suppliers with the wider cluster around Dresden.

The right choice depends on the function the company wants to build. A good site-selection process should therefore begin with the operating model, not with a preferred city or an incentive headline.

For Taiwanese companies, Czechia is best understood not as a small standalone market, but as a practical base inside the Central European technology and industrial network.

How Kodo can help

Kodo helps international companies prepare the commercial and operational side of entering Czechia. We can support early market validation, partner mapping, Czech positioning, local web content, first recruitment communication and coordination of the steps needed before launch.

Contact Kodo

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