To address the growing demand for advanced power semiconductors, onsemi plans investing $2 billion to establish a state-of-the-art, vertically integrated silicon carbide (SiC) manufacturing facility in the Czech Republic. The new site will produce onsemi’s intelligent power semiconductors essential for improving the energy efficiency of applications in electric vehicles, renewable energy and AI data centers.
With this investment, onsemi becomes one of the first companies to invest in advanced semiconductor manufacturing in Central European region. This will help onsemi contribute to the strategic positioning of the region within the EU’s semiconductor value chain.
Speaking about the investment, Hassan El-Khoury, president and CEO, onsemi, said, “Our brownfield investment would establish a Central European supply chain to better service our customers’ rapidly increasing demand for innovative technologies that improve the energy efficiency in their applications. Through a close collaboration with the Czech government, the expansion would also enhance our production of intelligent power semiconductors that are essential to helping ensure the European Union is able to achieve its ambitions to significantly reduce carbon emissions and environmental impact.”
“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. 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,” said Jozef Síkela, Minister of Industry and Trade of the Czech Republic.
onsemi’s $2 billion (44 billion CZK) is a part of the company’s previously disclosed long-term capital expenditure target. The fund will help onsemi build its current operations in Czech Republic, which include silicon crystal growth, silicon and silicon carbide wafer manufacturing (polished and EPI) and a silicon wafer fab. Currently, the site produces over three million wafers annually, including more than one billion power devices. The new site will contribute annually more than $270 million (6 billion CZK) to the country’s GDP.
The final regulatory and incentive approvals are due for the new site. Once done, this would be one of the largest private sector investments in the Czech Republic’s history and would further contribute to the prosperity and economic dynamism of the Zlin region.
