Onsemi, the US chip maker, plans to invest up to $2 billion in its production facility in the Czech Republic, according to Euractiv.
The decision came after negotiations with the government led to the largest foreign investment in the country’s history. The company’s chip production in the town of Rožnov pod Radhoštem, near the Slovakian border, is expected to increase dramatically. It will contribute more than 240 million euros a year to the country’s GDP.
Czech Prime Minister Petr Fiala stated:
It is not the acquisition of an assembly plant, it is the acquisition of a centre of modern technologies, production with high added value.
Industry and Trade Minister Josef Síkela supported the opinion. He called the expansion of the Onsemi plant a strategic investment in the future of Czech industry. Síkela also noted that chips were playing an increasingly important role in the automotive industry, as they currently accounted for 10 per cent of the cost of every electric vehicle and would continue to do so.
According to the minister, Onsemi chose Volkswagen Group, including Czech car manufacturer Škoda Auto, as a strategic partner.
[The investment] would solidify advanced power semiconductor supply chains for its European and global customer base.
The Czech government will hold talks on stimulus with Onsemi in the coming months.
