Strategic investment in chips. The Commission approves a state aid of 450 million € for the Onsemi factory in the Czech Republic.
Brussels, November 21, 2025 – The European Commission has approved a state aid measure worth 450 million euros (12 billion Czech Crowns) through which the Czech Republic will support the American chip manufacturer Onsemi in building a new production facility. The factory, located in Rožnov pod Radhoštěm, will be the first of its kind in the European Union and will play a crucial role in reducing the community bloc's dependence on semiconductor imports.
The project aims at the integrated production of power devices based on silicon carbide (SiC). This advanced technology is essential for high-performance power electronics, being widely used in electric vehicles, fast charging stations, and renewable energy generation. The factory will cover all stages of production, from growing SiC crystals to finished devices.
The state aid will take the form of a direct grant and will cover part of Onsemi's total investment, which amounts to 1.64 billion euros. It is estimated that the new facility will start commercial operations by 2027. This factory positions Europe as a player in the chip sector.
In exchange for public support, Onsemi has committed to adhering to strict conditions aligned with the "European Chips Act". The company will have to accept priority orders in the event of a supply crisis in the EU, contribute to the development of next-generation technology, and invest in training a skilled workforce. Additionally, Onsemi has agreed to share with the Czech state any profits that exceed current expectations.
Executive Vice President Teresa Ribera emphasized the strategic importance of the decision:
"This project will enhance the resilience of manufacturing industries and reduce external dependence on semiconductors. The chips produced at this factory are crucial for green technologies... vital for Europe's energy transition."
This is the eighth decision by the Commission based on the principles of the Chips Act, with the total value of approved aid so far in various member states amounting to approximately 12.8 billion euros.
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