onsemi to Boost Chip Production with $2 Billion Czech Investment

The US-based chipmaker onsemi has announced a significant investment plan, earmarking up to USD 2 billion for the expansion of its production capabilities in the Czech Republic. This move, as confirmed by both onsemi and the Czech government on Wednesday, represents the largest single foreign investment in the Czech Republic since its separation from Czechoslovakia in 1993.

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Located in the eastern Czech town of Roznov pod Radhostem, onsemi's existing production facility is set for a monumental increase in its production capacity. Currently, the facility boasts a production output of 10 million chips daily. With this new investment, the company aims to boost its production by several hundred percent. This expansion is not just about scaling up production but also significantly increasing employment opportunities in the region. The workforce at the Roznov facility is expected to rise to 3,000, up from the current 1,700 employees.

The strategic investment by onsemi is poised to enhance the advanced power semiconductor supply chain for its European and global customer base. The Roznov site will focus on manufacturing intelligent power semiconductors. These components are crucial for enhancing energy efficiency across various applications, including electric vehicles, renewable energy solutions, and AI data centres.

This development is particularly noteworthy for the Czech economy, where the automotive industry plays a pivotal role. The collaboration between onsemi and Volkswagen, which owns Skoda Auto — the country's largest export company — underscores the strategic importance of this investment. Skoda Auto's partnership with onsemi is expected to further strengthen with this expansion.

In light of this significant investment, the Czech government has expressed its intention to negotiate with onsemi regarding potential incentives to support the company's expansion efforts. This collaboration highlights a mutual commitment to fostering technological advancement and economic growth in the region.

The announcement from onsemi and the Czech government marks a milestone in the country's economic development post-Czechoslovakia split. It underscores the importance of foreign investment in driving technological innovation and job creation within the Czech Republic.