Core Insights - The European Commission has approved a €450 million ($518 million) subsidy for onsemi to establish a silicon carbide (SiC) semiconductor fabrication facility in Czechia, part of a larger €1.64 billion investment [1][4][5] - The new plant in Rožnov pod Radhoštěm will be the first integrated SiC device manufacturing site in the EU, handling all stages of production from crystal growth to finished semiconductors [2][3] - The project aims to strengthen the EU's semiconductor value chain and reduce reliance on non-European supply sources, with public funding deemed necessary for the investment to proceed [4][5] Company Developments - onsemi's existing operations in Czechia include silicon crystal growth and wafer manufacturing, and the new facility will enhance these capabilities with vertically integrated SiC production [3] - The facility will focus on producing SiC power devices, which are essential for applications in electric vehicles, renewable energy systems, and industrial power electronics [3][6] - The company has committed to ensuring a broader impact on the EU semiconductor ecosystem and will contribute to the development of next-generation 200 mm SiC technology [6][7] Industry Implications - The project is expected to improve the resilience of manufacturing industries in the EU and reduce external dependency on semiconductor supplies [6] - The chips produced at the new plant are crucial for green technologies, supporting Europe's energy transition and green initiatives [6] - onsemi will prioritize orders during supply shortages as specified in the European Chips Act, indicating a commitment to the EU semiconductor strategy [7]