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. 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 $2 billion 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, which include silicon crystal growth, silicon and silicon carbide wafer manufacturing (polished and EPI) and a silicon wafer fab. 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 USD 270 million to the country?s GDP.

Pending all final regulatory and incentive approvals, this would be one of the largest private sector investments in the Czech Republic?s history and 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 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.