U.S. Chipmaker onsemi to Invest $2 Billion in Czech Production Facility
US chipmaker onsemi is making a significant move by investing $2 billion into its production facility in the Czech Republic. This investment is noteworthy as it's the biggest single foreign investment in the country since the split of Czechoslovakia in 1993.
Multi-Year Investment Plans
The planned investment of up to $2 billion is set to be spread over multiple years. The funds will be allocated towards enhancing the company’s existing facility in the eastern Czech town of Roznov pod Radhostem. This town is currently home to a plant that produces 10 million chips each day.
Boost in Production and Job Creation
The investment aims to significantly ramp up production, increasing output by hundreds of percent. The initiative will also lead to increased employment, with the number of jobs rising to 3,000 from the current 1,700. The company stated that this move would solidify the advanced power semiconductor supply chain for its European and global customer base.
Focus on Advanced Power Semiconductors
onsemi’s site in Roznov will focus on producing intelligent power semiconductors. These components are crucial for improving energy efficiency in various applications such as electric vehicles, renewable energy, and AI data centers.
Strategic Importance for Czech Economy
The car industry is an integral part of the Czech economy, and this investment supports that sector. Germany's Volkswagen, which owns Skoda Auto (the country’s largest export company), is a strategic partner for onsemi.
Government Support and Negotiations
The Czech government has shown its support for this massive investment. Government officials announced that they will engage in negotiations with onsemi about the possible incentives that can be offered to the company.
This enormous investment marks a pivotal moment for the Czech Republic, potentially transforming its semiconductor industry and positively impacting its economy and workforce.
