US Chipmaker to Invest $2 Billion in Czechia
US chip manufacturer, Onsemi, is set to invest up to $2 billion in its production facility in the Czech town of Rožnov pod Radhoštem, near the Slovakian border. The investment marks the largest foreign investment in the country's history and is expected to significantly boost the country's economy.
Major Economic Boost
Onsemi’s increased chip production is projected to contribute more than €240 million annually to Czechia’s GDP. "It is not the acquisition of an assembly plant; it is the acquisition of a center of modern technologies, production with high added value," said Czech Prime Minister Petr Fiala. This underscores the importance of the high-tech sector, which Czechia aims to develop further.
Strategic for Czech Industry
Industry and Trade Minister Josef Síkela emphasized the strategic importance of the expansion. Chips play a crucial role in the automotive industry, comprising 10% of the value of every electric car. This investment is therefore seen as integral to the future of the Czech industrial sector.
Onsemi has also chosen the Volkswagen Group, which includes the Czech carmaker Škoda Auto, as a strategic partner. This decision is expected to benefit the Czech automotive sector significantly.
Strengthening Supply Chains
The investment will "solidify advanced power semiconductor supply chains for its European and global customer base," said Onsemi. The Czech government plans to negotiate incentives with Onsemi in the coming months to facilitate this massive investment.
This move not only strengthens Czechia's position in the high-tech industry but also fortifies its importance in the global semiconductor supply chain.
