In a strategic move toward addressing these demands, onsemi has announced that it plans to establish a state-of-the-art, vertically integrated silicon carbide (SiC) manufacturing facility in the Czech Republic.
According to the company, the site would produce its intelligent power semiconductors that are essential for improving the energy efficiency of applications in electric vehicles, renewable energy and AI data centres.
"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,” said Hassane El-Khoury, president and CEO, onsemi. “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. “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 electromobility.”
onsemi’s plan to expand SiC manufacturing with a multi-year brownfield investment of up to $2 billion (44 billion CZK) is part of the company’s previously disclosed long-term capital expenditure target.
This investment is intended to build on the company’s current operations in the Czech Republic, which include silicon crystal growth, silicon and silicon carbide wafer manufacturing (polished and EPI) and a silicon wafer fab.
At present the site can produce more than three million wafers annually, including more than one billion power devices.
Pending all final regulatory and incentive approvals, this new investment would be one of the largest private sector investments in the Czech Republic to date.
Onsemi was one of the first companies to invest in advanced semiconductor manufacturing in the Central European region and with this investment, the company would 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.
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 maximise manufacturing and production efficiency.
