Onsemi’s $2 billion multi-year investment aims to enhance the advanced power semiconductor supply chain, boosting reliability and innovation for European and global customers.
On Wednesday, the Czech government revealed that Onsemi has selected Rožnov for a $2 billion microchip manufacturing hub.
The decision, announced in June, underscores a strategic move to bolster the company’s production capabilities for electric vehicles and renewable energy industries.
The expansion will upgrade an existing site to produce next-generation silicon-carbide semiconductors, a key component for modern electric vehicles.
ON Semiconductor’s investment is a significant step towards addressing the growing demand in the automotive sector and reducing the European Union’s reliance on imported chips.
This new facility will manage the entire production process, from growing silicon carbide crystals to final product assembly, providing a stable supply chain previously spread across multiple continents.
ON Semiconductor is negotiating with the Czech government and the EU for financial support, potentially covering about a quarter of the investment.
The project is set to create 800 new jobs over the next seven years, a significant boost to the local economy.
It is expected to increase annual revenue at the Roznov site to at least $1.2 billion. The expansion is pivotal in transitioning the Czech economy towards more advanced, less labour-intensive industries than traditional automotive manufacturing, promising a brighter future for the local community.
ON Semiconductor has also signed a multi-year deal to supply silicon-carbide components to Volkswagen AG, which owns the Czech manufacturer Skoda Auto AS. This partnership is crucial as VW and Skoda have faced production disruptions due to chip shortages from Asian suppliers.
Helena Horska, chief economist at Raiffeisen Bank International AG and adviser to Prime Minister Petr Fiala, highlighted the expansion as a critical step in reducing the EU’s dependence on imported components.
