Onsemi Invests $2 Billion in Czech Semi Factories to Expand Production of Silicon Carbide Chips
US chip manufacturer Onsemi has announced an investment of up to $2 billion to increase its semiconductor production in the Czech Republic. As the EU seeks self-sufficiency in key supplies, the company will expand its production capacity in Europe.
The brownfield project will be the largest one-time foreign direct investment in the Czech Republic. Czech Prime Minister Pete Fiara stated that this investment will be the “largest investment in modern history” and will double the current production of the factory, which is 10 million chips per day.
Onsemi will expand its business in the eastern town of Roznov pod Radhost to accommodate the entire production chain of silicon carbide semiconductors, including final chip modules for the automotive and renewable energy industries.
Previously, STMicroelectronics has taken similar measures in Italy, Intel, and TSMC in Germany.
A statement from Onsemi stated, “The factory will produce the company’s intelligent power semiconductors, which are crucial for improving energy efficiency in electric vehicles, renewable energy, and artificial intelligence data center applications.”
Silicon carbide chips are more expensive than standard silicon chips, but they are favored by car manufacturers due to their energy-saving, lightweight, and durability.
The large-scale supply chain disruption during the COVID-19 epidemic and the intensification of trade tensions with China have intensified Europe’s review of dependence on Asian chip supply. Recently, the disruption of Red Sea shipping has intensified people’s concerns.
Simon Keeton, head of Onsemi Power Solutions, told Reuters that the new investment may start production in 2027, but did not disclose further details on employment, production, or expected income.
This investment falls within the company’s capital expenditure target, as the company previously announced layoffs of approximately 1000 out of its over 30000 employees.
Consulting firm McKinsey predicts that the global semiconductor manufacturing industry will grow from $600 billion in 2021 to $trillions by 2030.