Introduction
Onsemi is taking a giant step in Europe’s semiconductor industry. The company (Onsemi)has secured a €450 million government grant from the Czech Republic, approved by the European Commission, to build the continent’s first fully integrated 8-inch silicon carbide (SiC) power device fab.
This milestone is not just about a factory. It represents a strategic move to strengthen Europe’s position in EV and industrial power electronics. With the facility, Onsemi plans to cover the full SiC value chain—from crystal growth to wafer processing and final device fabrication, establishing a new benchmark for the region.
techovedas.com/new-8-inch-sic-plants-set-to-transform-the-semiconductor-industry-by-2027
5-Point Overview
- €450M government grant awarded to Onsemi for its integrated 8-inch SiC fab in the Czech Republic.
- Facility covers the entire SiC value chain, enabling better supply chain control and quality assurance.
- The fab will produce advanced SiC MOSFETs and diodes for EVs, industrial drives, and renewable energy systems.
- Onsemi’s investment aligns with the European Chips Act, supporting local semiconductor manufacturing.
- Commercial operations are expected to begin in 2027, boosting Europe’s competitiveness in power electronics.
Europe’s First Fully Integrated 8-Inch SiC Fab
The new facility, located in Rožnov pod Radhoštěm, is designed to be Europe’s flagship 8-inch SiC wafer line. Unlike a standard packaging plant, it will handle the entire vertical integration process:
- Front-End: SiC crystal growth using advanced technologies for high-quality wafers.
- Mid-End: 8-inch (200mm) wafer processing to increase chip density and lower costs.
- Back-End: Fabrication of power devices including MOSFETs and diodes for automotive and industrial applications.
This vertical integration allows Onsemi to control product quality, reduce supply chain risks, and scale production efficiently. It also positions the company to compete globally in the high-growth SiC market.
Why SiC is Key to Europe’s EV and Industrial Markets
Silicon carbide is a next-generation semiconductor material that offers significant advantages over traditional silicon:
- Handles higher voltages and temperatures
- Reduces energy losses during switching
- Enables smaller, lighter power modules
- Supports higher efficiency in EV powertrains and industrial equipment
For automakers, SiC MOSFETs mean longer driving ranges, faster charging, and smaller cooling systems, which are crucial for EV adoption. Industrial users benefit from energy-efficient motors, renewable energy inverters, and fast-charging infrastructure.
Onsemi’s new fab will help Europe reduce dependency on U.S., Japanese, and Taiwanese SiC suppliers, strengthening local production for EV manufacturers such as Volkswagen, BMW, Mercedes-Benz, Stellantis, and Volvo.
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Onsemi’s SiC Strategy and Technology Roadmap
Onsemi has been aggressively expanding its SiC portfolio. In 3Q25, the company launched its next-generation 750V–1200V SiC MOSFETs, optimized for EVs and industrial applications. Key advantages include:
- Higher power density
- Faster switching speeds
- Lower conduction and switching losses
- Improved thermal management
The Czech facility will produce these devices on 8-inch wafers fab allowing Onsemi to achieve economies of scale and reduce manufacturing costs. This transition from 6-inch to 8-inch wafers is essential for meeting growing demand in Europe and globally.
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Strengthening Automotive Partnerships
Onsemi’s investment also reinforces long-term automotive supply agreements. In 2H25, the company expanded partnerships with global automakers and Tier-1 suppliers, securing SiC supply for 5–10 years.
These partnerships help:
- Guarantee a stable supply of SiC devices for EVs
- Reduce reliance on Asia-based suppliers
- Support automakers’ high-voltage EV architectures (800V systems)
- Maintain competitive pricing and production schedules
The Czech fab will act as a central hub for Onsemi’s European SiC production, complementing its facilities in the U.S. and Asia.
techovedas.com/2-billion-boost-onsemi-ambitious-expansion-in-czech-republic
Strategic Importance for Europe
The European Commission’s grant reflects the strategic value of the project. It aligns with EU goals to:
- Enhance semiconductor sovereignty
- Support clean energy and EV adoption
- Create high-skilled manufacturing and R&D jobs
- Advance the European Chips Act targets
By investing €1.64 billion (including the €450M grant), Onsemi positions Europe as a global hub for power electronics innovation, with a focus on energy-efficient technologies and EV production.
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What Makes This Fab Unique
Full Vertical Integration: Owning the entire SiC process—from crystal growth to device fabrication—gives Onsemi better control over quality, yield, and cost.
8-Inch Wafer Technology: The shift from 6-inch to 8-inch wafers is critical for scaling production and reducing cost per device. More chips per wafer mean greater efficiency and competitive pricing.
Focus on EV and Industrial Markets: The fab is optimized for EV traction inverters, onboard chargers, industrial drives, and renewable energy systems, covering Europe’s fastest-growing demand segments.
EU-Backed Investment: The €450M grant demonstrates government confidence in Onsemi’s technology and commitment to local semiconductor production.
Impact on Europe’s Semiconductor Ecosystem
The Czech fab is expected to:
- Accelerate EV adoption with locally sourced SiC devices
- Boost energy efficiency in industrial and renewable applications
- Create high-skilled jobs in manufacturing, R&D, and supply chain
- Strengthen Europe’s semiconductor independence from Asia and the U.S.
- Enhance Onsemi’s global competitiveness in the power device market
Experts see this project as a catalyst for other European SiC and GaN investments, signaling a broader shift in the continent’s semiconductor strategy.
Our Take
Onsemi’s €450M investment is a strategically timed move that aStronger Supply Chains: Local SiC production reduces Europe’s dependence on overseas chip suppliers.
EV-Ready Europe: The fab directly supports Europe’s fast-growing EV market with reliable, high-efficiency SiC power devices.
Tech Leadership: Onsemi’s 8-inch SiC capability and full vertical integration deliver a clear edge over competitors still using smaller wafers.
Economic Boost: The project creates thousands of high-skill jobs and accelerates growth in materials, automation, and semiconductor testing.
Future-Proof Vision: Beyond EVs, the fab positions Europe and Onsemi to lead in renewable energy, fast charging, and next-gen power electronics.
In short, this project reinforces Europe’s semiconductor sovereignty and signals that the region is ready to lead the next decade of SiC and power electronics innovation.
Conclusion
Onsemi’s Czech Republic fab is a game-changer for Europe’s EV and industrial power markets.
By combining vertical integration, 8-inch wafer technology, and government support, the company is setting new standards for production scale, efficiency, and supply chain security.
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