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onsemi, based in Scottsdale, Arizona, plans to invest up to $2 billion to build an integrated silicon carbide manufacturing facility in the Czech Republic.
Company He said on Wednesday that the site will produce smart power semiconductors needed to improve energy efficiency in applications In electric cars, renewable energy, and artificial intelligence data centers.
“Our investment in brownfields will create a supply chain in Central Europe to better serve our customers’ rapidly growing demand for innovative technologies that improve energy efficiency in their applications,” said Hassan Al-Khoury, President and CEO of ONSemi.
The company noted that its plan to expand manufacturing of silicon carbide, or SiC, with a multi-year investment of up to $2 billion (CZK 44 billion) is part of a previously disclosed long-term capital spending target.
The investment will build on Onsemi's existing operations in the Czech Republic, which include silicon crystal growth, silicon wafer manufacturing, silicon carbide and silicon wafer manufacturing.
Currently, the site can produce more than 3 million chips per year, including more than 1 billion power devices. Once completed, the operation will contribute more than $270 million annually to the country's gross domestic product, according to the company.
Onsimi said that it is cooperating with the government of the Czech Republic to prepare an incentive package that will support investment.
This investment will be one of the largest private sector investments in the history of the Czech Republic and will contribute to the growth of the Zlin region, according to Onceme.
In addition, Onsimi stated that through the investment it will contribute to the strategic positioning of the region within the EU semiconductor value chain and show that all EU countries can benefit from the European chip law.
The €43 billion EU chip law, announced in 2023, aims to support domestic chip manufacturing.