American chip manufacturer Onsemi is poised to make a monumental investment of up to €2 billion in its Czech Republic semiconductor plant, marking the largest single foreign direct investment in the country's history. The expansion aims to transform the existing facility in Roznov pod Radhostem into a comprehensive production hub for silicon carbide semiconductors, crucial components for electric vehicles, renewable energy systems, and AI data centers.
This strategic move aligns with the European Union's push for greater self-sufficiency in critical chip supplies and follows similar investments by industry giants like STMicroelectronics, Intel, and TSMC across Europe. The Czech Republic, with its well-established automotive industry, is an ideal location for Onsemi's expansion. The increased production capacity is expected to significantly boost the output of energy-efficient, lightweight, and durable silicon carbide chips, which are in high demand due to their superior performance in various applications.
The investment is projected to create numerous job opportunities and significantly contribute to the Czech economy. Prime Minister Petr Fiala hailed the project as a game-changer, multiplying the plant's current output of 10 million chips per day. Production is expected to commence in 2027, with Onsemi already negotiating state aid with the government, potentially reaching up to 27.5% of the total investment.
This landmark investment not only solidifies Onsemi's presence in Europe but also positions the Czech Republic as a key player in the global semiconductor landscape. With the semiconductor industry projected to reach a trillion dollars by 2030, Onsemi's commitment to expanding its production capabilities in the Czech Republic is a testament to the country's growing importance in this vital sector.
