EU approves €450m Czech support for onsemi’s new SiC chip facility

The European Commission (EC) has approved a €450m ($518m) subsidy from the Czech authorities for onsemi to found a caller silicon carbide (SiC) semiconductor fabrication installation successful Rožnov pod Radhoštěm, Czechia.

The backing forms portion of the US-based spot manufacturer’s planned €1.64bn concern and is expected to alteration the completion of the works by 2027.

Upon completion, the Rožnov pod Radhoštěm works is expected to go the archetypal integrated SiC instrumentality manufacturing tract of its benignant successful the European Union (EU).

The installation volition grip each stages of SiC instrumentality production, from crystal maturation to finished semiconductors.

In June 2024, onsemi confirmed plans for a multi-year brownfield concern successful Rožnov pod Radhoštěm.

The company’s existing section operations see silicon crystal maturation and wafer manufacturing. The caller installation volition physique connected this instauration with vertically integrated SiC accumulation capabilities.

SiC powerfulness devices are utilized successful applications including electrical vehicles, renewable vigor systems, fast-charging infrastructure, and concern powerfulness electronics, wherever their higher voltage tolerance and ratio are key.

The task is intended to fortify the EU’s semiconductor worth concatenation and trim reliance connected non-European proviso sources.

onsemi’s projected works was submitted for authorities assistance support nether Article 107(3)(c) of the Treaty connected the Functioning of the EU, which allows governments to enactment economical developments nether circumstantial conditions.

The EC assessed that nationalist backing was required for this concern to proceed wrong Europe, citing a backing spread that would person different prevented onsemi from choosing an EU location.

The Commission concluded that the measurement supports economical improvement by allowing the instauration of an integrated manufacturing installation for SiC devices successful Europe. It besides determined that the assistance acts arsenic an incentive, arsenic onsemi would not undertake this concern successful Europe without nationalist funding.

EC Clean, Just and Competitive Transition Executive Vice-President Teresa Ribera said: “This task volition amended the resilience of manufacturing industries and trim outer dependency for semiconductors.

“The chips that volition beryllium produced astatine this works are important for greenish technologies, specified arsenic electrical vehicles and charging stations, which are captious for Europe’s vigor modulation and greenish initiatives.”

Under the statement with Czech authorities, onsemi has committed to respective requirements. The institution volition guarantee a broader interaction connected the EU semiconductor ecosystem.

It volition lend to the improvement of next-generation 200 mm SiC technology. onsemi volition besides prioritise orders during proviso shortages arsenic specified successful the European Chips Act.