Czech Republic's microelectronics is booming: 2 billion euros for new chip factory!

Czech Republic's microelectronics is booming: 2 billion euros for new chip factory!

The Czech Republic is experiencing a remarkable boom in microelectronics, especially since the international semiconductor manufacturer onsemi announced its intention to invest around two billion euros in the construction of a state-of-the-art chip factory. This new manufacturing facility for silicon carbide-based power semiconductors will be built in Rosenau, south of Ostrava, and represents the largest single private investment in the Czech Republic since the end of the Eastern Bloc. Around 11,000 jobs and sales of two billion euros in the semiconductor sector demonstrate the growth of this strategic industry in the region.

Jozef Síkela, the Czech Minister of Industry and Trade, highlights the importance of this investment as it benefits not only the semiconductor and automotive industries, but also electromobility. In addition to onsemi, other international companies have also established a foothold in the Czech Republic, including Intel with a presence in Brno and STM and Renesas with development and design centers in Prague. This supports the development of a robust microelectronics and chip design ecosystem.

Strategic importance and cooperation opportunities

onsemi's factory will produce smart power semiconductors that are critical to current global megatrends in electrification, renewable energy and artificial intelligence. Hassane El-Khoury, CEO of onsemi, emphasizes the role of this investment in energy efficiency and strengthening the European supply chain. The facility will already produce silicon crystals and wafers and is expected to contribute more than $270 million (CZK 6 billion) to the Czech Republic's gross domestic product upon completion.

The Czech Republic also benefits from historical expertise in the microelectronics sector from the socialist era, which further increases the region's attractiveness for foreign investment. Support from local companies such as Codasip, Meopta and Crytur increases the dynamism of the tech sector. Additionally, the Taiwan Semiconductor Research Institute (TSRI) is launching a chip designer training center at the University of Prague to meet skilled labor needs.

Cooperation with Saxony

Given the high industrial capacities in Saxony and the complementary capabilities of the Czech industry, both regions are striving for closer cooperation in the semiconductor sector. Saxony is concerned about the lack of chip designers, which highlights the need for more intensive cooperation with Bohemia and the Czech Republic. There are also prospects for cooperation with Polish Silesia, especially in the city of Wroclaw. These cross-border partnerships could significantly increase the region's competitiveness in the global semiconductor market.

Overall, onsemi's investment in the Czech Republic shows how important semiconductor production is for the future of the European market. With the announcement of this state-of-the-art factory, the company not only supports the economic development of the Czech Republic, but also contributes to achieving the goals of the European Chips Act, which is intended to strengthen semiconductor supply chains in the EU.