"European Engine" CTP issued an invitation, and the semiconductor near-strait outsourcing agency is at the moment

In the face of political changes in ground and increased supervision pressure, Taiwan's large technology and semiconductor factories are accelerating their reshaping of global layout strategies. One of the core promoters of the European near-sea outsourcing trend, CTP, the largest developer of European licensed industrial and logistics real estate. We visited Jakub Kodr, CTP Czech President, to gain an in-depth understanding of why Central and Europe, especially the Czech Republic, is becoming a compelling development opportunity and important strategic point for Taiwanese high-tech enterprises and other Asian manufacturers to expand European versions.

Global supply chain shock has prompted Asian companies to rethink layout strategies

Under the promotion of multiple global factors, Central Europe has gradually become the strategic focus of Asian enterprises' priority layout. From the COVID-19 epidemic to the blockage of the Suez River, supply chain closures have revealed the fragility of long-distance purchasing models for the first time. In addition, the regulations introduced by the European Union, such as the carbon edge adjustment mechanism (CBAM), and the European chip bill with a scale of 4.3 billion euros. The results are quite clear: if the company engages in the manufacturing of high-tech parts and wants to sell it to the European market, it will become more and more necessary to be in local factories, otherwise it will face huge and unnecessary costs.

Compared with other parts of Europe, Central Europe has become a manufacturing base for reserved purposes due to its advantages in cost, sufficient technical talents and a good geographical location. Local labor costs are only one-quarter of that in West Europe, but the growth rate of production capacity is higher than the EU average. The number of graduates in manufacturing industry and STEM (science, technology, engineering and mathematics) in the Czech Republic, Poland, Hungary and other countries ranks among the top in Europe, and is close to major Western European markets such as Germany and France, which is an ideal point for Taiwanese companies.

Self-built self-built model management to create a new green smart factory

As the owner of both the development and operational roles, CTP is a partner of long-term trust in customers. CTP has more than 13 million square meters of logistics and industrial space in Europe, and continues to develop and manage its parks in its own built and self-built model. Through close cooperation with customers, it has a deep understanding of its operating needs, provides customized factory buildings, and uses CTP's rich land resources to help companies expand their scale in the most suitable locations. About 70% of its new leases are existing customers of CTP.

One of the best examples of long-term cooperation between CTP and its customers is British Industrial, a marker electronic manufacturer from Taiwan. The British industry has been in the park where CTP has entered more than 20 years ago, and was first built at the CTPark Modřice near Brno. In 2024, CTP built and handed over a brand new 52,600 square meters of customized chemical factory in CTPark Blučina. The factory integrates British-owned manufacturing resources in Europe and is directed to the park's solar system and space created for vehicle technology lines, making it a new production base that meets the ever-lasting standards.

Manufacturing heavy town transformation and upgrading, an ideal base for high-tech equipment

The Czech Republic is located in the heart of Europe, and has been developed from the Czech Republic. Companies can deliver products to most European markets in one day. This is a key to the Just-in-time logistics. The Czech Republic is also a manufacturing town with a long history, especially in the automotive and electronic industries.

In 2022, the Czech car production surpassed Germany for the first time. The growth of Czech manufacturing industry can come from the high proportion of STEM graduates, good university education level, low tax rate and complete basic construction. The comprehensive conditions are extremely attractive to enterprises.

Another advantage of the Czech Republic to attract businesses is its stable political and business environment. The Czech Republic is also a member of the European Union and can enter the entire European Union market without any barriers. Moody's recently listed the Czech Republic's credit rating as Aa3, which is the same as the UK and Belgian era. For capital-intensive industries such as semiconductors, this stability is extremely important.

First place green energy foundation to help customers comply with CBAM laws

Permanent development is no longer an option, but a double key to the legal requirements and corporate reputation. CTP is a leading industry leader in Europe's Yongsheng Industrial Real Estate. It promises to achieve carbon neutrality across the region and aims to build a rooftop solar system with a total device capacity of 400 MWp in various CTPark parks by 2030.

CTP's parks are all built according to BREEAM standards and help customers achieve ESG goals. For example, the UK's new factory is equipped with advanced HVAC systems, energy-saving oxygen floors, and a large number of park renewable energy facilities, which not only help customers to meet the EU CBAM regulations, but also effectively reduce long-term operation costs.

Near-sea outsourcing trends are emerging, and high-tech industries accelerate the layout of European equipment

CTP has recently started cooperation with several Asian companies, reflecting the continuous rise in near-sea outsourcing trends. Taiwan and Chinese technology manufacturers are accelerating their pace in Europe. Taiwan's large-scale enterprise Guangda computers are currently developing a brand new factory area in CTPark Jülich, Germany. As for Chinese manufacturers, they want to establish its first European production base in CTPark Budapest East in Hungary; China's heavy machinery manufacturer Zoomlion also recently signed a contract to enter CTPark Tatabánya in Hungary, and is expected to use a 35,000 square meters of venue.

Jakub Kodr emphasized that these are the strategic address selection results of customers. Through close cooperation with customers, CTP helps enterprises achieve the most efficient factory points.. For example, the reason why Hungary is the best choice for China International Heavy Industry is not only cost-effective and labor-intensive, CTPark neighborhoods near Budapest, Bratislavan and Vienna can radiate three major capital markets from a single base, which is also a key factor.

Semiconductors are the core of the future of European industries, and they all rely on their development whether in areas such as electric vehicles, AI or cloud computing. The Czech Republic has gathered many world-leading automotive and electronic component suppliers, most of which have entered the CTPark Park area.

The Czech Republic has a complete supply chain ecosystem, covering R&D centers, component manufacturers and final assembly factories, laying a solid foundation for future development.

Jakub Kodr observed that the attention from semiconductor suppliers is continuing to rise, with layouts from packaging test factories to dust-free room parts manufacturers considering. CTPark Brno and CTPark Ostrava are attracting high-value manufacturing industries to enter due to their technical talent resources and good logistics conditions. Taking Ostrella Development as an example, Vitesco Technologies is expanding its electric vehicle components capacity in the CTP park, and the facility includes advanced laboratory space and solar drive logistics systems.

Innovation and talent are both improving, Taiwan's key times that cannot be missed

Jakub Kodr suggests that when Taiwanese manufacturers plan near-shore outsourcing production bases in Europe, they should not only focus on costs; entering market channels, compliance with regulations, talent acquisition and development capabilities are also key considerations. The Czech Republic not only possesses the above advantages, but also gathers existing Taiwanese enterprise settlements and a well-known technological manufacturing culture.

The trusted partner like CTP can reduce the risk of entry in the market. CTP is familiar with the local market and business culture, and continues to assist customers in handling land use, factory permissions and employee recruitment. Most importantly, CTP has experience in tailoring the factory and can support high-tech, clean manufacturing and ESG-compliant operating models.

Europe pursues strategic autonomy in the semiconductor and technology fields, and its attitude is quite certain. If an enterprise wants to become an European supply chain in the future and serves local customers in depth, the closer it is to the market, the better it is.

The Czech Republic not only has reserve costs and logistics advantages, but also has practical innovation and abundant talents, becoming the best base for Europe's layout. CTP has helped many Taiwanese companies successfully establish a plan in Central Europe and will continue to provide support to more companies. Now is the key moment of action.

CTP is the largest industrial and logistics real estate operator in Europe. It integrates development, own and operation management, and is calculated as the largest businessman based on the rental area. CTP Headquarters is located in the Netherlands and has a deep layout in Central Europe. It cooperates with global manufacturers, technology leaders and logistics companies to provide high-quality, continuous and forward-looking industry space.