Electrification, renewables and artificial intelligence are global megatrends converging and driving unprecedented demands for advanced power semiconductors. Specifically, those that are capable of optimizing energy conversion and management.

In a strategic move toward addressing these demands, onsemi 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 that 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 service our customers’ rapidly increasing demand for innovative technologies,” said Hassane El-Khoury, president and CEO, onsemi.

In addition, El-Khoury said, “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 Mr. Jozef Síkela, Minister of Industry and Trade of the Czech Republic.

Moreover, Sikela said the investments strengthens the country’s semiconductor field. At the same time, it can also contribute to the development of the automotive industry.

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 US$2 billion (44 billion CZK) is part of the company’s previously disclosed long-term capital expenditure target. This investment would build on the company’s current operations in the Czech Republic. This includes silicon crystal growth, silicon, and silicon carbide wafer manufacturing (polished and EPI), and a silicon wafer fab.

Today, the site can produce more than three million wafers annually, including more than one billion power devices. Upon completion, the operation would contribute annually more than US$270 million (6 billion CZK) to the country’s GDP.

Pending all final regulatory and incentive approvals¹, this would be one of the largest private sector investments in the Czech Republic’s history. Thus, would further contribute to the prosperity and economic dynamism of the Zlín region.

onsemi is one of the first companies to invest in advanced semiconductor manufacturing in the Central European region. With this investment, the company would contribute to the strategic positioning of the region within the EU’s semiconductor value chain. Moreover, it will 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 of increasing market share and technological advancement to strengthen the resilience of the EU’s semiconductor supply chains in times of ever-growing demand.

Driving Innovation in Power Semiconductors

Silicon carbide 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. This integration would also enable onsemi to leverage its latest advancements in research and development (R&D) to maximize manufacturing and production efficiency.

¹ Including the investment incentive approval by the government of the Czech Republic and its notification to the European Commission

20 June 2024