AES Semigas


19 June 2024

onsemi selects Czech Republic to establish $2bn end-to-end silicon carbide production for power semiconductors

In a strategic move addressing what it describes as unprecedented demand for power semiconductors that can optimize energy conversion and management, onsemi of Scottsdale, AZ, USA plans to establish a vertically integrated silicon carbide (SiC) manufacturing facility in the Czech Republic. The site would produce the firm’s intelligent power semiconductors for improving the energy efficiency of power electronics in electric vehicles, renewable energy and artificial intelligence (AI) data centers.

“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,” says president & CEO Hassane El-Khoury. “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,” he adds.

Picture: onsemi facility in Rožnov pod Radhoštěm in the Czech Republic.

“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,” believes Jozef Síkela, the Czech Republic’s Minister of Industry and Trade. “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 electro-mobility.”

Commitment to Europe and the Czech Republic

onsemi’s plan to expand SiC manufacturing with a multi-year brownfield investment of up to $2bn (CZK44bn) is part of its previously disclosed long-term capital expenditure target. This investment would build on existing operations in the Czech Republic, which include silicon crystal growth, silicon and silicon carbide wafer manufacturing (polished and epitaxy) and a silicon wafer fab. Currently, the site can produce more than 3 million wafers annually, including more than 1 billion power devices. Upon completion, the operation would contribute annually more than US$270m (CZK6bn) to the country’s gross domestic product (GDP).

Pending all final regulatory and incentive approvals (including by the government of the Czech Republic and its notification to the European Commission), this would be one of the largest private sector investments in the Czech Republic’s history and would further contribute to the economic prosperity of the Zlín region. Onsemi’s investment would also contribute to the strategic positioning of the region within the EU’s semiconductor value chain and 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.

See related items:

onsemi unveils complete power solution to improve energy efficiency for data centers

onsemi realigns business groups to expand product portfolio and accelerate growth

onsemi opens systems application lab for EVs in Europe

onsemi expands Czech silicon carbide wafer and epi fab

onsemi Roznov wins Zlín Region manufacturing innovation award

Tags: SiC Power electronics



Book This Space