A vision painted in silicon. Image by sefa ozel/E+ via Getty Images.
onsemi, headquartered in Scottsdale, Arizona, has set its sights on a groundbreaking venture, with plans to allocate up to $2 billion towards the construction of an integrated silicon carbide manufacturing plant in the Czech Republic.
The company unveiled its ambitious project on a Wednesday, emphasizing that the facility would spearhead the production of intelligent power semiconductors pivotal for enhancing the energy efficiency of various applications, ranging from electric vehicles to renewable energy sources and AI data centers.
“Our upcoming brownfield investment is poised to cement a Central European supply chain, enabling us to cater better to the burgeoning demand from our clients for cutting-edge technologies that elevate the energy efficiency within their operational frameworks,” highlighted onsemi’s President and CEO, Hassane El-Khoury.
The strategic move to bolster silicon carbide (SiC) manufacturing through a substantial multi-year investment of up to $2 billion (44 billion CZK) forms a segment of the company’s previously communicated long-term capital expenditure objective.
The initiative would serve as a natural progression from onsemi’s existing ventures in the Czech Republic, where activities encompass silicon crystal growth, silicon and silicon carbide wafer fabrication, and operation of a silicon wafer fab.
The current output capacity of the facility stands at over 3 million wafers per annum, with a staggering production count exceeding 1 billion power devices. Post-establishment, the operation is projected to inject more than $270 million annually into the Czech Republic’s GDP, as indicated by the company.
onsemi has emphasized its collaboration with the Czech Republic government to devise an incentive package that would provide bolster to the investment at hand.
Arguably one of the most substantial private sector investments in the annals of Czech Republic’s industrial history, the endeavor is anticipated to foster growth within the Zlín region, according to onsemi.
Furthermore, the company has underscored that the investment carries the promise of uplifting the strategic positioning of the region within the semiconductor value chain of the European Union, effectively showcasing that every EU member state stands to gain from the European Chips Act.
Notably, the EU’s unveiling of the €43 billion Chips Act back in 2023 marked a pivotal step in fortifying local chip manufacturing efforts today.
