A 2 Billion Investment By A Us Company

The Sleepy Czech Town Helping Europe Compete in the Global Chip War

A 2 billion investment by a US company.

The Czech town of Roznov pod Radhostem was best known for its rum-drizzled sweet pies and an open-air museum showing off historical wooden houses. But now, thanks to a 2 billion investment by US chipmaker ON Semiconductor Corp, it’s poised to become a major player in the global chip war.

ON Semiconductor’s new factory in Roznov will produce silicon carbide wafers, which are used in a variety of electronic devices, including electric vehicles, solar panels, and 5G networks. The factory is expected to create 500 new jobs and help Europe reduce its reliance on Asian chipmakers.

The global chip shortage

The global chip shortage has had a major impact on the automotive industry, forcing automakers to cut production and delay deliveries. The shortage is also affecting other industries, including consumer electronics and medical devices.

The shortage is due to a number of factors, including the COVID-19 pandemic, which disrupted supply chains and led to increased demand for chips. The Ukraine war has also exacerbated the shortage, as Russia is a major supplier of neon gas, which is used in the production of chips.

Europe’s response

The European Union has been working to reduce its reliance on Asian chipmakers. In 2021, the EU launched a new initiative called the European Chips Act, which aims to invest 43 billion euros in the European semiconductor industry.

The EU is also working with other countries, including the United States and Japan, to develop new chip production capacity.

The future of the chip industry

The global chip shortage is expected to continue for the next few years. However, the investment by ON Semiconductor in Roznov is a sign that the European chip industry is starting to rebound.

With its highly skilled workforce and its proximity to major markets, Europe is well-positioned to become a major player in the global chip war.