The US chipmaker Onsemi has announced plans to invest up to €2 billion to significantly boost its semiconductor production capacity in the Czech Republic.

The major brownfield project in the eastern town of Roznov pod Radhostem would be the largest ever single foreign direct investment in the country if it goes ahead.

Pending approval of state aid, Onsemi will expand its existing operations in the town to house an entire production line for silicon carbide semiconductors, including final chip modules used in sectors like automotive and renewable energy.

The investment follows similar big-ticket silicon carbide projects recently unveiled by STMicroelectronics in Italy and semiconductor giants Intel and TSMC in Germany as the European Union strives for greater self-sufficiency in critical chip supplies.

"The site would produce the company's intelligent power semiconductors essential for improving energy efficiency of applications in electric vehicles, renewable energy and AI data centres," an Onsemi statement said.

Silicon carbide chips offer advantages over standard silicon ones, being more energy-efficient, lightweight and robust - making them particularly attractive to carmakers.
Czech Prime Minister Petr Fiala hailed the potential investment as "the biggest of its kind in modern history", capable of multiplying Onsemi's current daily output of 10 million chips at the Roznov plant.

However, details on job numbers, production volumes and revenues remain undisclosed, with Onsemi's Simon Keeton, head of power solutions, only indicating production could start in 2027.

The chipmaker, which last week announced 1,000 job cuts globally, said the investment fits within its capital expenditure targets as semiconductor manufacturing eyes becoming a trillion-euro industry by 2030.

State aid negotiations with Prague are ongoing but could reach up to 27.5 per cent of the total based on ministry estimates – following lavish incentives already granted to other semiconductor projects across Europe.

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