US chipmaker to invest $2 billion in Czechia

3 months ago 10

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News Based on facts, either observed and verified directly by the reporter, or reported and verified from knowledgeable sources.

The company's chip production in the town of Rožnov pod Radhoštem, near the border with Slovakia, is expected to increase dramatically, contributing more than €240 million annually to the country's GDP. [Shutterstock/Oleg_Yakovlev]

US chip manufacturer Onsemi is planning to invest up to $2 billion in its Czech production facility after negotiations with the government resulted in the largest foreign investment in the country’s history.

The company’s chip production in the town of Rožnov pod Radhoštem, near the border with Slovakia, is expected to increase dramatically, contributing more than €240 million annually to the country’s GDP.

“It is not the acquisition of an assembly plant, it is the acquisition of a centre of modern technologies, production with high added value,” said Czech Prime Minister Petr Fiala (ODS), adding that it is for a sector that the Czech Republic needs to develop.

This sentiment was echoed by Industry and Trade Minister Josef Síkela (STAN), who described the expansion of the Onsemi plant as a strategic investment for the future of Czech industry.

Síkela also pointed to chips playing an increasingly important role in the automotive industry, as they currently account for 10% of the value of every electric car and will continue to do so.

Síkela also stressed the importance of the automotive industry to the Czech economy, noting that Onsemi had chosen the Volkswagen Group, which includes Czech carmaker Škoda Auto, as a strategic partner.

The investment “would solidify advanced power semiconductor supply chains for its European and global customer base,” said Onsemi.

The Czech government will negotiate incentives with Onsemi in the coming months.

(Ondřej Plevák | Euractiv.cz)