On Friday 21 November, the European Commission approved Czech aid worth €450 million to support US chipmaker Onsemi in setting up a novel integrated chip manufacturing plant for Silicon Carbide (‘SiC') power devices in Rožnov pod Radhoštěm (Czech Republic).
This measure will help to increase the European Union’s technological autonomy in semiconductor technologies (see EUROPE 13743/3).
The aid will take the form of a direct grant of around €450 million to Onsemi to support an investment by the company of €1.64 billion.
The new facility, which is due to go into commercial operation by 2027, will be the first of its kind in the European Union. It will use innovative manufacturing technologies to produce high-performance products not currently available in Europe.
The Commission concluded that the aid had an “incentive effect” insofar as the beneficiary would not have carried out the investment in Europe without the public support. In addition, the measure has a limited impact on competition and trade within the EU, as it addresses a part of the European market where supply from manufacturers based in the EU is not sufficient for ensuring sufficient resilience to the European supply chain. (Original version in French by Lionel Changeur)