The European Commission (EC) has approved the Czech Republic’s plan to provide state aid worth €450 million (almost CZK 11 billion) to expand the production of US semiconductor manufacturer onsemi in Roznov pod Radhostem. According to the Commission, the company is expected to invest €1.64 billion (almost CZK 40 billion) in the new plant in Roznov. Onsemi is one of the key members of the Czech Semiconductor Centre consortium. The expansion of onsemi’s operations in Roznov represents the largest foreign investment in the modern history of the Czech Republic.
Onsemi announced its plans to build a new plant last June. In its report on Friday, the EC stated that the new plant is expected to start commercial operations by 2027. According to the Commission, the project will contribute to increasing the European Union’s technological autonomy in the field of semiconductors. The Ministry of Industry and Trade subsequently announced that, thanks to the approval of public support, the state could provide onsemi with an investment incentive of around CZK 12 billion. However, the support still has to be approved by the government.
The plant is expected to produce smart power semiconductors that improve the energy efficiency of electric vehicles, renewable energy sources, and data centers with artificial intelligence. Production should build on current operations, which produce silicon crystals and silicon chips.
“This project will improve the resilience of manufacturing industries and reduce external dependency for semiconductors. The chips that will be produced at this plant are crucial for green technologies, such as electric vehicles and charging stations, which are vital for Europe’s energy transition and green initiatives,” said Teresa Ribera, Executive Vice-President for Clean, Just and Competitive Transition.
“We welcome the European Commission’s decision after a thorough and careful review. This is a positive step that reflects the importance of onsemi’s technologies and our role in supporting the European Union’s leadership in advanced, energy-efficient power semiconductors. We remain focused on supporting our customers throughout the ongoing process,” states a press release from onsemi.
Get more information on the website of EU Commission.
Photo: onsemi Roznov
