PRAGUE — US chipmaker Onsemi plans a multi-year investment of up to $2 billion in its production facility in the Czech Republic, the company and the Czech government said on Wednesday.
The government said the money will be invested in the company’s existing production facility in the eastern Czech town of Roznov pod Radhostem. It is the largest foreign investment in the country since the split of Czechoslovakia in 1993.
The company based in Scottsdale, Arizona, currently produces 10 million chips per day in Roznov. The investment would increase production by hundreds of percent, the government said. It said the number of jobs created in Roznov will increase from the current 1,700 to 3,000.
The company said the move would “strengthen the supply chain of advanced power semiconductors for its European and global customer base.”
“The site would produce the company’s intelligent power semiconductors that are essential for improving the energy efficiency of electric vehicle, renewable energy and AI data center applications,” the company said in a statement.
The automotive industry is an important part of the Czech economy. Germany’s Volkswagen, owner of Skoda Auto, the country’s largest export company, is a strategic partner for onsemi.
The Czech government said it will negotiate with onsemi about incentives it can offer the company.