Onsemi has announced plans to establish a state-of-the-art, vertically integrated Silicon Carbide (SiC) manufacturing facility in the Czech Republic. The site would produce the company's intelligent power semiconductors essential for improving the energy efficiency of applications in electric vehicles, renewable energy, and AI data centers.
Onsemi's previously revealed long-term capital expenditure target includes plans to expand SiC manufacturing with a multi-year brownfield investment of up to US$2 billion. This investment would add to the company's existing operations in the Czech Republic, which include silicon crystal growth, silicon and SiC wafer production (polished and EPI), and a silicon wafer fab.
Today, the site can produce over three million wafers annually, including over one billion power devices. Upon completion, the operation would annually contribute more than US$270 million to the country's GDP.
This would be one of the largest private sector investments in the Czech Republic's history. The investment would further contribute to the prosperity and economic dynamism of the Zlín region, pending all final regulatory and incentive approvals.
The announcement underscores Onsemi's strategic congruence with the European Chips Act's overarching goals of bolstering the resilience of the EU's semiconductor supply chains in the face of constantly increasing demand by increasing market share and technological advancement.
SiC is a critical material for high-power, high-temperature applications, and is extremely difficult to produce. Onsemi is one of the only companies in the world with the ability to manufacture SiC-based semiconductors from crystal growth to advanced packaging solutions. By expanding its production facilities in the Czech Republic, Onsemi would be faster to provide supply assurance for customers, strengthening its leadership in intelligent power solutions.
"Our brownfield investment would establish a Central European supply chain to better service our customers' rapidly increasing demand for innovative technologies that improve the energy efficiency in their applications," said Hassane El-Khoury, president and CEO of Onsemi. "Through a close collaboration with the Czech government, the expansion would also enhance our production of intelligent power semiconductors that are essential to helping ensure the European Union is able to achieve its ambitions to significantly reduce carbon emissions and environmental impact."
"onsemi's decision to expand in Czechia is a clear confirmation of our country's attractiveness for foreign investment and will bring significant momentum for 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 field but can also contribute to the development of the automotive industry and help us with its adaptation to the rise of electromobility."
