The small Czech town of Roznov pod Radhostem, once known for its traditional pies and historical wooden houses, is now gaining attention for a very different reason. In June, US-based ON Semiconductor Corp. announced a $2 billion investment to establish a new manufacturing hub in Roznov, marking the largest foreign investment in the Czech Republic in the last 30 years.
This significant investment aims to modernize Roznov’s existing facility to produce advanced semiconductors, crucial for electric vehicles and renewable energy sectors. The project is set to enhance the Czech Republic’s economy and contribute to the European Union’s efforts to reduce reliance on global supply chains amid ongoing competition for critical components.
ON Semiconductor’s expansion is set to bring around 800 new jobs over the next seven years and increase the plant’s annual revenue significantly by focusing on higher-margin silicon-carbide semiconductors. However, the local community faces challenges in accommodating this growth, with plans to build hundreds of new apartments and invest in local infrastructure to support the influx of workers.
The investment also highlights Roznov’s historical significance in semiconductor production, dating back to the Cold War era when it was a hub for Czechoslovakia’s electronics industry. The new facility will integrate the entire manufacturing process, positioning Roznov as a key player in the European semiconductor landscape.
This development contrasts with the neighboring region of Ostrava, which has struggled economically since the decline of its traditional industries. The semiconductor expansion in Roznov represents a strategic move towards securing Europe’s technological and economic future, with the town poised to become a crucial node in the global chip supply chain.
As ON Semiconductor continues to negotiate financial support with the Czech government and the EU, the success of this project could set a precedent for similar high-tech investments across the region, potentially revitalizing not just the town but the entire Czech economy.
