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

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The European Commission (EC) has approved a €450m ($518m) subsidy from the Czech government for onsemi to establish a new silicon carbide (SiC) semiconductor fabrication facility in Rožnov pod Radhoštěm, Czechia.

The funding forms part of the US-based chip manufacturer’s planned €1.64bn investment and is expected to enable the completion of the plant by 2027.

Upon completion, the Rožnov pod Radhoštěm plant is expected to become the first integrated SiC device manufacturing site of its kind in the European Union (EU).

The facility will handle all stages of SiC device production, from crystal growth to finished semiconductors.

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

The company’s existing local operations include silicon crystal growth and wafer manufacturing. The new facility will build on this foundation with vertically integrated SiC production capabilities.

SiC power devices are used in applications including electric vehicles, renewable energy systems, fast-charging infrastructure, and industrial power electronics, where their higher voltage tolerance and efficiency are key.

The project is intended to strengthen the EU’s semiconductor value chain and reduce reliance on non-European supply sources.

onsemi’s proposed plant was submitted for state aid approval under Article 107(3)(c) of the Treaty on the Functioning of the EU, which allows governments to support economic developments under specific conditions.

The EC assessed that public funding was required for this investment to proceed within Europe, citing a funding gap that would have otherwise prevented onsemi from choosing an EU location.

The Commission concluded that the measure supports economic development by allowing the creation of an integrated manufacturing facility for SiC devices in Europe. It also determined that the aid acts as an incentive, as onsemi would not undertake this investment in Europe without public funding.

EC Clean, Just and Competitive Transition Executive Vice-President Teresa Ribera said: “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.”

Under the agreement with Czech authorities, onsemi has committed to several requirements. The company will ensure a broader impact on the EU semiconductor ecosystem.

It will contribute to the development of next-generation 200 mm SiC technology. onsemi will also prioritise orders during supply shortages as specified in the European Chips Act.

In addition, the company will deploy workforce education and skills programmes.

onsemi has also agreed to share any profits exceeding current forecasts with Czechia.

In January 2025, onsemi submitted an application for its Rožnov pod Radhoštěm facility to be recognised as an integrated production site under the European Chips Act. This designation process is separate from state aid assessment but obliges compliance with further EU policy requirements.

The decision marks the eighth such approval by the Commission under principles set by the European Chips Act Communication, which entered into force in September 2023. Previous approvals to date amount to a cumulative €12.8bn in state aid supporting semiconductor projects across EU member states.

onsemi stated: “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.”

"EU approves €450m Czech support for onsemi’s new SiC chip facility" was originally created and published by Verdict, a GlobalData owned brand.

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