onsemi to Invest $2 Billion in Czech Silicon Carbide Expansion

onsemi, a leading semiconductor solutions provider, has announced a bold move to invest up to $2 billion in the end-to-end production of silicon carbide (SiC) power devices. This multi-year investment is set to revolutionize the company's operations and solidify its presence in the Czech Republic.

Already equipped with a SiC wafer production plant in the Czech Republic, onsemi is strategically collaborating with the national government to secure subsidies through the EU Chips Act. This partnership underscores the company's commitment to innovation and sustainable growth in the region.

Building upon its existing operations in the Czech Republic, which encompass silicon crystal growth, silicon and silicon carbide wafer manufacturing, and a state-of-the-art silicon wafer fab, onsemi's expansion plans are poised to make a significant impact. The current facility boasts an impressive capacity, capable of producing over three million wafers annually, including more than one billion power devices.

The proposed expansion is not only a testament to onsemi's vision but also represents one of the largest private sector investments in the history of the Czech Republic. Furthermore, it marks a milestone as one of the initial forays into advanced semiconductor manufacturing in Central Europe. The company has already secured a decade-long agreement with European automotive supplier Vitesco for SiC devices, while Magna is gearing up to procure equipment for the SiC fab.

By establishing a vertically integrated silicon carbide site, onsemi is not only introducing advanced packaging capabilities to the region but also positioning itself to meet the escalating demand for clean, energy-efficient power semiconductors. The site's focus on producing intelligent power semiconductors is crucial for enhancing the energy efficiency of various applications, ranging from electric vehicles to renewable energy sources and AI data centers.

Commenting on the expansion plans, Hassane El-Khoury, President and CEO of onsemi, emphasized the significance of the investment. "Our brownfield investment aims to create a Central European supply chain that can effectively cater to our customers' growing need for innovative technologies that enhance energy efficiency in their applications," he stated. El-Khoury also highlighted the collaborative efforts with the Czech government, noting that the expansion would further bolster the production of intelligent power semiconductors essential for supporting the European Union's ambitious goals of reducing carbon emissions and environmental impact.

Jozef Síkela, Minister of Industry and Trade of the Czech Republic, expressed enthusiasm about onsemi's decision to expand within the country. "onsemi's choice to invest in Czechia is a clear affirmation of our nation's appeal to foreign investors and will significantly drive the growth of our economy," Síkela remarked. He further emphasized the potential benefits of the investment, citing its potential to strengthen the semiconductor sector, drive advancements in the automotive industry, and facilitate the transition to electromobility.

For more information about onsemi and its innovative semiconductor solutions, visit www.onsemi.com.