EU Commission approves €450M Czech aid for Onsemi plant
The European Commission has approved a EUR 450 million Czech state aid package to support US chipmaker Onsemi in building an integrated semiconductor manufacturing facility in Rožnov pod Radhoštěm.
The investment will finance the establishment of a new production site for silicon carbide (SiC) power devices. According to the Commission, the measure is compliant with EU State aid rules and is expected to strengthen the bloc’s technological autonomy in critical semiconductor technologies. The project aligns with the objectives of the European Chips Act and the Commission’s 2024–2029 political guidelines.
Brussels said the Onsemi facility will contribute to Europe’s digital and green transitions by increasing the supply of chips used in low-carbon technologies.
"This project will improve the resilience of manufacturing industries and reduce external dependency for semiconductors. The chips that will be produced at this plant are crucial for green technologies, such as electric vehicles and charging stations, which are vital for Europe’s energy transition and green initiatives," said Teresa Ribera, Executive Vice-President for Clean, Just and Competitive Transition, in a press release.
The EUR 450 million support measure corresponds to roughly CZK 12 billion. The Commission expects the investment to bolster the EU’s role in the global semiconductor value chain and enhance the security of supply for European industries dependent on advanced power electronics.
The new EUR 1.64 billion facility is expected to start commercial operations by 2027.
"We welcome the European Commission’s decision after a thorough and careful review. This is a positive step that reflects the importance of onsemi’s technologies and our role in supporting the European Union's leadership in advanced, energy-efficient power semiconductors. We remain focused on supporting our customers throughout the ongoing process," said Onsemi in a separate statement.
