EU approves €450m Czech support
The subsidy forms part of onsemi’s broader €1.64 billion investment plan and is expected to enable the plant’s completion by 2027.
The European Commission (EC) has approved a €450 million ($518 million) subsidy from the Czech government to support onsemi’s development of a new silicon carbide (SiC) semiconductor fabrication facility in Rožnov pod Radhoštěm, Czechia. The subsidy forms part of onsemi’s broader €1.64 billion investment plan and is expected to enable the plant’s completion by 2027.
Once operational, the Rožnov pod Radhoštěm facility will become the first fully integrated SiC device manufacturing site in the European Union, covering every stage of production—from crystal growth to finished power semiconductors. The project expands on onsemi’s existing presence in the region, where the company already operates silicon crystal growth and wafer production lines. The new fab will introduce vertically integrated SiC capabilities, supporting applications such as electric vehicles, renewable energy systems, fast-charging infrastructure, and industrial power electronics.
The investment is designed to strengthen Europe’s semiconductor supply chain and reduce reliance on external providers. onsemi submitted the project for approval under Article 107(3)(c) of the Treaty on the Functioning of the EU, which permits targeted government support under defined conditions. The EC concluded that public funding was necessary for the project to proceed in Europe, citing a significant financing gap and confirming that the subsidy serves as a genuine incentive.
EC Executive Vice-President for a Clean, Just and Competitive Transition, Teresa Ribera, said the project will enhance industrial resilience and supply security, while supporting Europe’s transition to cleaner technologies.
Under the agreement, onsemi will help advance next-generation 200 mm SiC technology, contribute to workforce development initiatives, and prioritise supply during shortages as outlined in the European Chips Act. The company has also agreed to share profits exceeding current projections with Czechia.
In January 2025, onsemi applied for the site to be recognised as an integrated production facility under the European Chips Act, separate from the state aid process. The approval marks the eighth EC decision under the framework, contributing to a cumulative €12.8 billion in state-backed semiconductor investments across the EU.
onsemi welcomed the ruling, calling it an important milestone that underscores the company’s role in advancing energy-efficient power semiconductor leadership within Europe.
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