- Onsemi invests $2 billion in Czech Republic for silicon carbide facility, boosting advanced semiconductor production for electric vehicles and AI.
- Onsemi’s $2B Czech investment boosts Europe’s advanced semiconductor manufacturing, supporting EU’s carbon reduction goals and technological innovation amidst rising demand for electrification, renewable energy, and AI applications.
OUR TAKE
Onsemi’s investment of $2 billion in the construction of silicon carbide manufacturing facilities in the Czech Republic is an important move to promote advanced semiconductor production. This move not only enhances Europe’s technological strength, but also promotes environmental protection and economic development. I see the possibility of promoting the future of electric vehicles and renewable energy.
–Alaiya Ding, BTW reporter
Onsemi plans a $2 billion investment in the Czech Republic to establish a vertically integrated silicon carbide manufacturing facility. This facility will enhance the supply of advanced power semiconductors for electric vehicles, renewable energy, and AI applications.
What happened?
Onsemi has announced a multi-year investment of up to $2 billion to establish a vertically integrated silicon carbide (SiC) manufacturing facility in the Czech Republic. This state-of-the-art facility will produce advanced power semiconductors, essential for applications in electric vehicles, renewable energy, and AI data centres. The investment is expected to significantly boost the local economy, contributing over $270 million annually to the country’s GDP. This project, pending regulatory and incentive approvals, will be one of the largest private sector investments in Czech history, enhancing Onsemi’s production capabilities and meeting the rising global demand for energy-efficient semiconductor solutions.
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Why it’s important
Onsemi’s investment in the Czech Republic is a strategic move that underscores the growing importance of advanced semiconductor manufacturing in Europe. As the demand for electrification, renewable energy, and AI applications surges, the need for efficient power semiconductors becomes critical. Silicon carbide, known for its high-power and high-temperature capabilities, is a challenging material to produce, and Onsemi’s facility will be among the few in the world with end-to-end SiC production capabilities. This investment aligns with the European Union’s goals under the European Chips Act to increase market share and strengthen the resilience of the semiconductor supply chain. By boosting local manufacturing, Onsemi not only enhances its supply chain but also supports the EU’s ambition to reduce carbon emissions and advance technological innovation.
