New chip manufacturing plant: EUR 450 million aid for US manufacturer Onsemi approved
The Commission has approved a EUR 450 million Czech State aid measure to support the US chipmaker Onsemi in building a Silicon Carbide chip manufacturing plant in Rožnov pod Radhoštěm, strengthening the EU semiconductor autonomy and supporting the EU’s digital and green transitions.
The facility will be a first-of-its-kind in the EU, producing Silicon Carbide power devices, which are essential for high-efficiency electronics used in electric vehicles, charging stations, renewables and industrial applications. The EUR 1.64 billion facility will integrate all production stages, use advanced technologies, and is expected to begin commercial operations by 2027.
The Commission approved the measure under Article 107(3)(c) of the Treaty on the Functioning of the EU (‘TFEU’), and based on the principles of the European Chips Act Communication. It found that the measure is necessary and proportionate, strengthening the EU’s semiconductor supply resilience and addressing a market segment where EU production is currently insufficient. It concluded the measure has limited competition distortions and provides significant benefits for the European chip ecosystem.
For more information, see the Commission’s PR.