US chip maker Onsemi is planning to invest $2 billion in its production facility in Rožnov pod Radhoštem–the biggest single foreign investment in Czechia’s modern history. The company’s chip production in Czechia would shoot up by hundreds of percent, boosting value-added production, creating thousands of new jobs and contributing more than CZK 6 billion annually to the country’s GDP.

Onsemi considered three possible locations for its planned 2 billion dollar investment – the US, South Korea and its existing production facility in the eastern Czech town. Czechia won out largely thanks to its automotive industry. The company’s intelligent power semiconductors are essential for improving the energy efficiency of applications in electric vehicles, renewable energy and AI data centres. Forty percent of its production goes into the car industry and Germany’s Volkswagen, which owns Skoda Auto, is a strategic partner for Onsemi.

Prime Minister Petr Fiala said the expansion of chip production in Rožnov would be a significant boost for the Czech industry.

Onsemi currently produces 10 million chips a day in Rožnov. The investment would increase production by hundreds of percent, the government said. According to estimates, the number of jobs created in Rožnov will increase to 3,000 from the current 1,700. The quality of jobs in downstream sectors will also increase, which could lead to higher wages throughout the region.

According to the Industry Minister Josef Sikela this investment project will improve Czechia’s standing in the eyes of other foreign investors, and along with the growth of the connected supply chain, will strengthen the country's export potential.

Compiled by the team of CzechTrade office for Baltics.
Source: Radio Prague International