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Onsemi in Wallachia: Producing Three Billion Chips a Year and the Future of European Chip Production

In Wallachia, they now produce three billion chips a year. Electronic car devices such as parking cameras and mobile phones cannot do without them.

During the covid-19 pandemic, Europe became convinced of how much semiconductors are needed and what a problem it is depending on their supplies from Asia. Because of this, even Škoda Auto parked thousands of unfinished cars on outdoor areas.

The American manufacturer will therefore decide in the near future whether to invest an additional two billion dollars (45 billion CZK) in the expansion of production in the Czech Republic. In addition to Rožnov, he is also thinking about the motherland USA or South Korea.

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“We are definitely thinking about the Czech Republic, we want to build on a brownfield near the place where we already operate,” said the company’s CEO Hassane El-Khoury to Novinkám, who was supposed to discuss this with government officials for the last time this Monday in Prague.

The decision on the location of the investment will be made in a few months at the latest. According to El-Khoury, proximity to car manufacturers, which represent about forty percent of sales for Onsemi, is important, also for logistical reasons.

The company does not only supply semiconductors, but entire modules, which are much larger.

The company is about to ask the government for an investment incentive. “We are currently preparing an application. At the same time, the process of notification to the European Commission will take place,” confirmed production director Aleš Cáb.

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The amount of support has not yet been determined. “At the moment, the final form and scope of the project is being prepared, so it is currently not possible to say what the final amount of support will be provided,” Marek Vošahlík, spokesman for the Ministry of Industry and Trade, told Novinkám.

“This is a complex investment in the entire chip production development ecosystem and will be a unique opportunity for chip development in the Czech Republic,” he added.

According to him, Industry Minister Jozef Síkela (STAN) has been negotiating with company representatives since the beginning of 2023, when they met in the American Silicon Valley.

The government will also decide on the project, and it will mainly involve material support and an additional tax discount.

Number one in sensors

Onsemi, which according to Vice President Simon Keeton is the world leader in image sensors for car companies and industry, produces over sixty billion chips worldwide, of which the already mentioned three billion are in Rožnov pod Radhoštěm.

“We will produce a chip for every resident of the Czech Republic in one day,” Cáb explained the scale of production. The company in Moravia employs more than two thousand people, the expansion of production would bring another thousand jobs.

According to financial director Josef Švejda, the company has sales of around seven billion crowns and currently produces silicon chips. If expanded, production from silicon carbide, a compound of carbon and silicon, would also be possible.

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According to Cáb, this is suitable for more efficient conduction of electricity. Savings when recharging the car from a fast charger alone can be up to ten percent. This would mean a significant extension of the range for electric cars.

Currently, the company receives cut silicon carbide crystals, so-called pucks, from New Hampshire, USA.

In Rožnov, the plates are produced in a unique way, where the laser disrupts the puck bond at a specified depth and the ultrasound then separates them. “We are the first in the world with an industrial application,” said Jiří Stružka, director of the chip production division.

From the puck, dozens of boards are created, and hundreds to thousands of chips can be produced on each of them. The boards then travel to chip production in Puchong, South Korea. But the ambition of the Rožno company is to have the complete process under its thumb.

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“It is a technology that is unique and important for current trends, for electromobility and renewable energy sources. These elements save up to fifty percent of electricity in some applications,” Cáb pointed out.

According to him, the role of chips, especially in cars, will grow significantly. A typical car uses around 1500 chips, but electric cars have many times more.

For example, the Škoda Enyaq has around eight thousand of them. According to Jan Melichar from Škoda Auto, the value of semiconductors in one car currently amounts to about $600, or CZK 13,600, but it is expected to double by 2030.

Cooperation with Škoda

The automaker established close cooperation with the company. In addition to the previously exclusive procurement of parts from direct suppliers of auto parts, it will acquire chips and entire modules directly from the Moravian company.

“Skoda and other manufacturers previously worked mainly with suppliers such as Bosch or Continental. This will continue in the future, but chip manufacturers are added to the triangle to make their development and final application as efficient as possible,” said Cáb.

According to him, the cooperation with the car company from Mladá Boleslav is also an impetus for Onsemi’s decision. “It is definitely a signal for the corporation that it has European customers and why invest here,” he stated.

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2024-01-26 10:06:08
#Americans #expansion #chip #production #Czech #Republic #News

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