onsemi selects the Czech Republic for the establishment of end-to-end silicon carbide production for modern power semiconductors

June 19, 2024.
– onsemi’s planned multi-year investment of up to $2 billion would solidify the advanced power semiconductor supply chain for its European and global customer base
– Vertically integrated silicon carbide site brings advanced packaging capabilities to the region and optimally positions onsemi to meet growing demand for clean, energy-efficient semiconductor solutions
– onsemi is working with the government of the Czech Republic to develop an incentive package to support the investment
– The investment would be one of the largest private sector investments in the history of the Czech Republic and one of the first investments in modern semiconductor manufacturing in Central Europe

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Brownfield investments would bring important production capacities for energy-efficient chips to Central Europe to secure the future of electrification, renewable energies and artificial intelligence. © onsemi

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Electrification, renewable energy and artificial intelligence are global megatrends that are converging to create unprecedented demand for advanced power semiconductors to optimize energy conversion and management. In a strategic move to meet these demands, onsemi announced plans to build a state-of-the-art, vertically integrated silicon carbide (SiC) manufacturing facility in the Czech Republic. The facility will produce the company’s smart power semiconductors, which are essential for improving the energy efficiency of applications in electric vehicles, renewable energy and AI data centers.

“Our brownfield investment would establish a Central European supply chain to better serve our customers’ rapidly growing demand for innovative technologies to improve the energy efficiency of their applications,” said Hassane El-Khoury, President and CEO of onsemi. “By working closely with the Czech government, the expansion would also enhance our production of smart power semiconductors that will make a significant contribution to the European Union achieving its ambitions to significantly reduce carbon emissions and environmental impact.”

“onsemi’s decision to expand in the Czech Republic is a clear confirmation of the attractiveness of our country for foreign investment and will give an important impetus to the development of our economy,” said Jozef Síkela, Minister of Industry and Trade of the Czech Republic. “This investment not only strengthens our position in the semiconductor sector, but can also contribute to the development of the automotive industry and help us adapt to increasing electromobility.”

onsemi’s commitment to Europe and the Czech Republic  

onsemi’s plan to expand SiC manufacturing with a multi-year brownfield investment of up to $2 billion (CZK 44 billion) is part of the company’s previously announced long-term investment goal. This investment would build on the company’s current operations in the Czech Republic, which include silicon crystal growth, silicon and silicon carbide wafer manufacturing (polished and EPI) and a silicon wafer fab. Today, more than three million wafers can be produced annually at this site, including more than one billion power devices. Once completed, the plant would contribute more than USD 270 million (CZK 6 billion) annually to the country’s GDP.

Subject to final approval by the authorities and the granting of incentives*, this would be one of the largest private sector investments in the history of the Czech Republic and would further contribute to the prosperity and economic dynamism of the Zlín region. onsemi is one of the first companies to invest in modern semiconductor manufacturing in the Central European region. With this investment, the company would contribute to the strategic positioning of the region within the EU semiconductor value chain and demonstrate that all EU countries can benefit from the European Chips Act. The announcement also reflects onsemi’s strategic alignment with the overarching goals of the European Chips Act, namely increasing market share and technological advancement to strengthen the resilience of EU semiconductor supply chains in times of ever-growing demand.   
*Including the approval of investment incentives by the Government of the Czech Republic and their notification to the European Commission

About onsemi

onsemi (Nasdaq: ON) drives breakthrough innovation to create a better future. With a focus on automotive and industrial end markets, the company accelerates change in megatrends such as vehicle electrification and safety, sustainable energy grids, industrial automation, and 5G and cloud infrastructures. onsemi offers a highly differentiated and innovative product portfolio that delivers smart energy and sensor technologies that solve the world’s most complex challenges and pave the way to a safer, cleaner and smarter world. onsemi is a recognized Fortune 500® company and is included in the Nasdaq-100 Index® and the S&P 500® Index. Learn more about onsemi at www.onsemi.com.

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