EU approves €450M boost for Onsemi’s SiC power chip plant
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The European Commission has approved a €450 million Czech support package for Onsemi’s planned Silicon Carbide (SiC) power semiconductor manufacturing plant in Rožnov pod Radhoštěm. The project will establish the EU’s first fully integrated SiC production line, from crystal growth to finished devices, with commercial output targeted for 2027.
For eeNews Europe readers, the move signals a major boost for Europe’s power electronics supply chain and a notable expansion of SiC capacity within the region. It also highlights new opportunities for automotive, renewable energy and industrial power markets seeking secure local sourcing.
A first-of-a-kind SiC facility in Europe
Czechia’s €450 million direct grant will support Onsemi’s broader €1.64 billion investment in the new fab. The facility will manufacture next-generation SiC devices with performance levels “currently not present in Europe,” according to the Commission.
SiC power devices are increasingly essential in electric vehicles, fast chargers, solar inverters and industrial power systems — all segments where European demand is outpacing local supply. The plant’s integrated manufacturing model is expected to improve resilience across the European semiconductor value chain, a central goal of the EU Chips Act.
Under the terms of the support package, Onsemi has committed to a series of conditions, including contributing to the development of the next generation of 200 mm SiC technology in Europe, implementing priority-rated orders in the event of supply shortages under the EU Chips Act, and supporting workforce development through education and training initiatives.
Onsemi has also applied for the facility to be recognized as an integrated production facility under the EU Chips Act — a separate approval process still underway.
Why the Commission gave the go-ahead
The Commission approved the measure under Article 107(3)(c) TFEU, which allows state aid for projects that develop specific economic activities under defined conditions. Its assessment concluded that the support is necessary, proportionate and has an incentive effect, meaning the investment would not occur in the EU without public funding.
Brussels also determined that competition risks are limited due to Europe’s current lack of SiC production capacity and the strategic need to reduce overreliance on imports. The project is expected to provide “wide positive effects” for Europe’s semiconductor ecosystem, especially in securing supply for critical power electronics.
Teresa Ribera, Executive Vice-President for Clean, Just and Competitive Transition, emphasized the strategic importance of the project: “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.”
With this approval, the Czech project becomes the eighth major semiconductor manufacturing measure cleared under the Chips Act framework, bringing total authorized state aid for such projects to approximately €12.8 billion across the EU.
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