Onsemi to invest up to $2 bln in Czech semiconductor plant
Adds prime minister, size of possible govt aid, paragraphss 8,14
By Jan Lopatka
PRAGUE, June 19 (Reuters) -U.S. chipmaker Onsemi ON.O will invest up to $2 billion to boost its semiconductor output in the Czech Republic, it said on Wednesday, expanding the company's European capacity as the European Union seeks self-sufficiency in critical supplies.
The brownfield project would be the largest one-off direct foreign investment in the Czech Republic.
Pending approval of state aid, Onsemi will expand its operations in the eastern town of Roznov pod Radhostem to house the full production chain for silicon carbide semiconductors including final chip modules used in the automotive and renewables sectors.
The investment follows similar moves by STMicroelectronics STMPA.PA -- also for silicon carbide chips -- in Italy, and by Intel INTC.O and TSMC 2330.TW in Germany.
"The site would produce the company’s intelligent power semiconductors essential for improving energy efficiency of applications in electric vehicles, renewable energy and AI data centres," an Onsemi statement said.
Silicon carbide chips are more expensive than standard silicon ones but are favoured by automakers because they are energy-efficient, lightweight and tough.
Massive supply chain disruptions during the COVID-19 pandemic and a rise in trade tensions with China have heightened scrutiny of Europe's reliance on Asia for chip supplies, with recent disruption to Red Sea shipping adding to concerns.
Czech Prime Minister Petr Fiala said the investment would be "the biggest of its kind in modern history" and would multiply current output at the plant, which is 10 million chips per day.
The head of Onsemi's power solutions division, Simon Keeton, told Reuters that production from the new investment could start in 2027 but did not disclose further detail on jobs, production volumes or expected revenue.
The investment is within the company's capital expenditure target and follows its announcement last week of about 1,000 job cuts among its 30,000-strong workforce.
Global semiconductor manufacturing is expected to become a trillion-dollar industry by 2030, expanding from $600 billion in 2021, consultancy firm McKinsey says.
INCENTIVES
Onsemi did not comment on the size of the incentive package under negotiation with the Czech government.
"With this investment, the company would contribute to the strategic positioning of the region within the EU’s semiconductor value chain and demonstrate that all EU countries can benefit from the European Chips Act," Onsemi said.
The Czech Industry and Trade Ministry said that state aid could reach up to 27.5% of the total investment. The incentive should be approved, including notification with the European Commission, in the first quarter of 2025, the ministry added.
The STMicroelectronics plant in Catania will cost 5 billion euros ($5.4 billion) and receive a direct government grant of about 2 billion euros.
Germany will contribute up to 5 billion euros to TSMC's $11 billion factory in Dresden, German officials said last year.
Intel, meanwhile, plans to spend 30 billion euros on two chip plants in Germany, with substantial government subsidies.
($1 = 0.9305 euros)
Reporting by Jan Lopatka
Editing by David Goodman
Ativos relacionados
Últimas notícias
Isenção de Responsabilidade: As entidades do XM Group proporcionam serviço de apenas-execução e acesso à nossa plataforma online de negociação, permitindo a visualização e/ou uso do conteúdo disponível no website ou através deste, o que não se destina a alterar ou a expandir o supracitado. Tal acesso e uso estão sempre sujeitos a: (i) Termos e Condições; (ii) Avisos de Risco; e (iii) Termos de Responsabilidade. Este, é desta forma, fornecido como informação generalizada. Particularmente, por favor esteja ciente que os conteúdos da nossa plataforma online de negociação não constituem solicitação ou oferta para iniciar qualquer transação nos mercados financeiros. Negociar em qualquer mercado financeiro envolve um nível de risco significativo de perda do capital.
Todo o material publicado na nossa plataforma de negociação online tem apenas objetivos educacionais/informativos e não contém — e não deve ser considerado conter — conselhos e recomendações financeiras, de negociação ou fiscalidade de investimentos, registo de preços de negociação, oferta e solicitação de transação em qualquer instrumento financeiro ou promoção financeira não solicitada direcionadas a si.
Qual conteúdo obtido por uma terceira parte, assim como o conteúdo preparado pela XM, tais como, opiniões, pesquisa, análises, preços, outra informação ou links para websites de terceiras partes contidos neste website são prestados "no estado em que se encontram", como um comentário de mercado generalizado e não constitui conselho de investimento. Na medida em que qualquer conteúdo é construído como pesquisa de investimento, deve considerar e aceitar que este não tem como objetivo e nem foi preparado de acordo com os requisitos legais concebidos para promover a independência da pesquisa de investimento, desta forma, deve ser considerado material de marketing sob as leis e regulações relevantes. Por favor, certifique-se que leu e compreendeu a nossa Notificação sobre Pesquisa de Investimento não-independente e o Aviso de Risco, relativos à informação supracitada, os quais podem ser acedidos aqui.
