The European Commission has approved €450 million in Czech state aid to support the development of a major new semiconductor facility, marking a significant step for Europe’s ambitions in advanced chip manufacturing. The funding will help US semiconductor company Onsemi build a first-of-its-kind silicon carbide (SiC) power device factory in Rožnov pod Radhoštěm.
The Czech government notified Brussels of its plan to support Onsemi’s investment under EU state aid regulations, prompting the Commission’s review and approval.
€2 Billion Investment Backed by European Funding
The aid package will take the form of a €450 million direct grant to Onsemi, contributing to the company’s €1.64 billion (€2bn total project value) investment in the new facility. The plant will produce advanced SiC power chips used in:
The project is expected to transform Onsemi’s existing site into one of Europe’s most advanced semiconductor manufacturing hubs.
First-of-Its-Kind SiC Factory in the European Union
The plant, set to begin commercial operations by 2027, will be the EU’s first facility dedicated to large-scale SiC semiconductor production — a critical technology for electrification and energy efficiency.
Commenting on the project last year, Onsemi President and CEO Hassane El-Khoury highlighted the strategic importance of expanding in Central Europe:
“Our brownfield investment would establish a Central European supply chain to support rapidly growing demand for innovative power technologies. This expansion will strengthen Europe’s ability to reduce carbon emissions and environmental impact.”
Strengthening Europe’s Semiconductor Supply Chain
The investment aligns with EU goals to reduce dependence on foreign semiconductor suppliers and improve energy-related technologies. SiC devices are essential for efficient power conversion, making them vital for EVs, smart grids and clean energy systems.
The combination of Onsemi’s technology leadership and strong government support positions the Czech Republic as a key emerging semiconductor hub in Europe.