US semiconductor manufacturer Onsemi has revealed plans to invest up to two billion US dollars in building a silicon carbide production facility in the Czech Republic. The plant will focus on producing SiC power semiconductors for electric vehicles, among other applications.
The investment is contingent upon final regulatory approval and the granting of subsidies by the Czech government. The new facility is slated to be constructed on a brownfield site. Onsemi already operates in the Czech Republic, with facilities in Brno and Rožnov pod Radhoštěm producing silicon crystals as well as silicon and silicon carbide wafers.
Onsemi’s multi-year investment aims to strengthen the semiconductor supply chain for its European and global customer base. If approved, the investment would represent one of the largest private investments in the history of the Czech Republic.
“Our brownfield investment would establish a Central European supply chain to better service our customers’ rapidly increasing demand for innovative technologies that improve the energy efficiency in their applications,” said Hassane El-Khoury, president and CEO of Onsemi. “Through a close collaboration with the Czech government, the expansion would also enhance our production of intelligent power semiconductors that are essential to helping ensure the European Union is able to achieve its ambitions to significantly reduce carbon emissions and environmental impact.”
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Silicon carbide-based semiconductors offer higher efficiency compared to pure silicon. When used in electric vehicle inverters, these semiconductors enable more electricity from the battery to reach the electric motors, increasing propulsion. Additionally, their higher efficiency leads to less waste heat generation, allowing for smaller and lighter cooling systems, further reducing overall system consumption and increasing range.
“Onsemi’s decision to expand in Czechia is a clear confirmation of our country’s attractiveness for foreign investment and will bring significant momentum for the development of our economy,” said Jozef Síkela, Minister of Industry and Trade of the Czech Republic. “This investment not only strengthens our position in the semiconductor field but can also contribute to the development of the automotive industry and help us with its adaptation to the rise of electromobility.”
Onsemi’s customers include major automakers such as Volkswagen, BMW, Hyundai-Kia, Zeekr, and drive supplier Vitesco, which is also building a plant for power electronics in the Czech Republic.