€450m released for construction of €2bn Czech chip factory

The Czech government notified the European Commission of its plan to support US firm Onsemi in the construction of the manufacturing plant for silicon carbide (SiC) power devices in Rožnov pod Radhoštěm.

The chips will be used in electric vehicles, fast-charging stations, renewable energy generation, and other industrial applications, but the plant required approval under EU state aid rules.

The aid will take the form of an approximately €450 million (CZK 12 billion) direct grant to Onsemi to support the company’s €1.64 billion (CZK 39.6 billion) investment.

The new facility, which is expected to start commercial operations by 2027, will be first-of-a-kind in the EU.

Commenting on plans for the plant last year, Hassane El-Khoury, president and CEO, Onsemi, said, “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.

“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.”