onsemi wants to expand its manufacturer plant in Rožnov for more than 40 billion CZK

by   CIJ News iDesk III
2024-06-20   08:42
/uploads/posts/2b04207ece3d91cb29eaa19c7613a61d838b3ef8/images/955770484.png

US semiconductor manufacturer onsemi will expand production at its plant in Rožnov pod Radhoštěm in the Vsetín region, the company announced yesterday. The value of the planned investment is two billion dollars, which is 46.3 billion crowns in current conversion. Onsemi will still negotiate with the Czech government on the investment incentive package. The company had originally considered its plants in the United States and Korea for production expansion as well.

After the government approves the incentives, the European Commission still needs to confirm them. Onsemi expects that after the expansion, its entire Roznov plant would contribute more than CZK 6 billion annually to the Czech Republic's gross domestic product (GDP).

Onsemi's new plant in Roznov would produce smart power semiconductors used to improve the energy efficiency of electric vehicles, renewable energy sources or artificial intelligence data centres. The production would build on the current facilities that produce silicon crystals and silicon chips.

"Our brownfield investment would ensure the establishment of a central European supply chain, enabling us to better meet our customers' rapidly growing demand for innovative technologies that improve the energy efficiency of their applications," said onsemi president Hassane El-Khoury. "By working closely with the Czech government, the expansion would strengthen our production of smart power semiconductors, which are essential for the European Union to be able to significantly reduce its carbon emissions and reduce its overall negative impact on the environment," he added.

Industry and Trade Minister Jozef Sikel (STAN) welcomed the investment decision. "Onsemi's decision to expand in the Czech Republic is a clear confirmation of the attractiveness of our country for foreign investment and a strong boost for our economy. The investment strengthens our position in the semiconductor sector and at the same time has the potential to contribute to the development of the automotive industry and help us adapt to the emerging era of electromobility," he said.

Information about the planned expansion of the onsemi factory in Roznov was also welcomed by Škoda Auto, which cooperates with the company in supplying intelligent power and sensor solutions for production cars. "The announcement of onsemi's investment is great news not only for car manufacturers, where it will undoubtedly make a major contribution to the resilience of supply chains in the semiconductor ecosystem, but also for the Czech Republic as a whole, which will significantly help strengthen the position of the semiconductor hub in the European region, while creating jobs and undoubtedly attracting highly skilled professionals and strengthening cooperation with educational institutions," said Karsten Schnake, a member of the carmaker's board of directors.

Source: onsemi and CTK

Switzerland
Albania
Asia
Austria
Belgium
Bosnia & Herzegovina
Bulgaria
Central Europe
China
Croatia
Czech Republic
Denmark
Estonia
Europe
Finland
France
Germany
Greece
Spain
Hungary
Italy
Kosovo
Latvia
Lithuania
Luxembourg
Moldova
Montenegro
Netherland
North Macedonia
Norway
Poland
Portugal
Romania
Russia
Serbia
Slovakia
Slovenia
Sweden
Ukraine
United Kingdom
USA