Onsemi's $2 Billion Investment in Czech Republic: A Boost for European Chip Manufacturing
Share
In a significant move for the European semiconductor industry, US chip-maker Onsemi has announced a massive $2 billion investment to expand its plant in the Czech Republic. This investment, considered the largest in the country's modern history, reflects a growing trend of chip manufacturing returning to Europe.Why is Onsemi investing in Europe?
- Geopolitical tensions: The ongoing trade war between the US and China has highlighted the importance of diversifying chip production and reducing reliance on single countries.
- EU's ambition for technology sovereignty: The European Union is actively promoting the development of a robust domestic semiconductor industry to reduce its dependence on external suppliers.
- Attractive investment climate: The Czech Republic offers a skilled workforce, competitive labor costs, and a supportive government environment for chip manufacturing.
- Job creation: The investment is expected to create thousands of new jobs in the Czech Republic, boosting the local economy.
- Increased chip production: The expanded plant will significantly increase Onsemi's production capacity, contributing to a more resilient global chip supply chain.
- Technological advancement: The investment will drive innovation in semiconductor technology and research in Europe.
- Competition from Asia: The Asian semiconductor industry remains dominant, with companies like TSMC and Samsung leading the way in chip manufacturing.
- Financial resources: Building a competitive semiconductor industry requires significant investments in research, development, and infrastructure.
- Talent acquisition: Attracting and retaining skilled engineers and technicians is crucial for the growth of the European semiconductor industry.