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Onsemi to invest 2 bilion USD into semiconductor production in the Czech Republic

Onsemi has chosen the Czech Republic for its semiconductor production. The anticipated multi-year investment of up to $2 billion would secure the supply chain for innovative power semiconductors for its clientele in Europe and beyond. This would be one of the biggest private sector investments in the history of the Czech Republic and among the first in Central Europe for cutting-edge semiconductor manufacturing.

Global megatrends including electrification, renewable energy, and artificial intelligence are combining to create never-before-seen demand for cutting-edge power semiconductors that can optimise energy management and conversion. Onsemi announced intentions to build a cutting-edge, vertically integrated silicon carbide (SiC) manufacturing facility in the Czech Republic as a calculated response to these needs. The company's intelligent power semiconductors, which are critical for enhancing the energy efficiency of applications in electric vehicles, renewable energy, and AI data centres, would be produced at this site.

onsemi’s decision to expand in Czechia is a clear confirmation of our country’s attractiveness for foreign investment and will bring significant momentum for the development of our economy,” said Mr. Jozef Síkela, Minister of Industry and Trade of the Czech Republic. “This investment not only strengthens our position in the semiconductor field but can also contribute to the development of the automotive industry and help us with its adaptation to the rise of electromobility.

A portion of Onsemi's previously announced long-term capital expenditure target is the multi-year brownfield investment of up to $2 billion (44 billion CZK) intended to develop SiC manufacturing. With this investment, the company would expand its silicon crystal growth, silicon and silicon carbide wafer production (polished and EPI), and silicon wafer fab activities in the Czech Republic. More than three million wafers, comprising more than one billion power devices, can now be produced annually at this location. After it is finished, the operation will boost the GDP of the nation by more than $270 million USD (6 billion CZK) per year.

This would be one of the biggest private sector investments in the history of the Czech Republic and would boost the prosperity and economic vibrancy of the Zlín region.  By making this investment, onsemi would help the region's strategic posture within the EU semiconductor value chain. The statement also highlights Onsemi's strategic alignment with the main objectives of the European Chips Act, which include boosting market share and advancing technology to make the semiconductor supply chains in the EU more resilient to periods of continuously rising demand.


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