On November 21, the European Commission announced that it has approved a €450 million (approximately RMB 3.681 billion) state aid package for Onsemi to build an 8-inch Silicon Carbide power semiconductor factory in Rožnov pod Radhoštěm, Czechia. The support will be granted as a direct subsidy and will back Onsemi's total planned investment of €1.64 billion (about RMB 13.416 billion).

The facility will be the first of its kind in the European Union, covering the full manufacturing chain—from SiC crystal growth to finished power devices. Commercial operations are expected to begin in 2027. Under the agreement, Onsemi will drive R&D on next-generation 200 mm SiC technology, expand European manufacturing capabilities, and ensure the project delivers positive spillover effects across the EU semiconductor value chain.

Onsemi reported third-quarter 2025 revenue of USD 1.5509 billion (approximately RMB 11.044 billion). Its 8-inch SiC wafers have already entered production, with shipments scheduled to start in 2026. The company is also strengthening its presence in AI data center power systems, offering SiC solutions for solid-state transformers, 800 VDC distribution and high-efficiency core power applications.

Europe's 8-Inch SiC Race Accelerates

Onsemi's project is part of a broader surge of 200 mm SiC expansion worldwide. Several major players are advancing or commissioning 8-inch SiC fabs across Europe, the U.S., and Japan.

STMicroelectronics (ST)

In November 2025, ST's "8-inch SiC Epitaxy and Chip Project (Phase 1A)" passed environmental protection acceptance in China. Production tools had already been installed and trial production launched earlier in May. The completed line currently supports an annual output of 20,000 automotive-grade MOSFETs. The full facility will be built in two phases, each with an annual capacity of 260,000 automotive-grade MOSFETs, reaching 520,000 units once fully operational.

Mitsubishi Electric

According to Nikkei Xtech in August 2025, Mitsubishi Electric will begin operating its first power semiconductor fab using 8-inch SiC substrates in November 2025 in Kumamoto, Japan. The company is collaborating with U.S. SiC substrate maker Coherent to secure cost-competitive wafers comparable to those from Chinese suppliers, with plans to expand further into railway and energy-sector applications.

Bosch

In December 2024, multiple media outlets including Reuters reported that the U.S. Department of Commerce reached a preliminary agreement to provide Bosch up to USD 225 million in subsidies and around USD 350 million in proposed government loans to upgrade its Roseville, California fab for SiC production. Bosch plans to begin 8-inch SiC chip manufacturing in 2026.

Why Brussels Approved the Case

The Commission said the subsidy is necessary and proportionate under Article 107(3)(c) TFEU, concluding that the investment would not have taken place in the EU without public support. Europe currently lacks large-scale SiC manufacturing capacity, and demand for SiC power devices in EVs, charging infrastructure, renewables and industrial equipment is outpacing domestic supply.

Executive Vice-President Teresa Ribera emphasized that the project will strengthen Europe's industrial resilience while supporting green technologies such as electric vehicles and charging networks.

This facility is the eighth major semiconductor manufacturing project approved under the EU Chips Act framework, bringing total authorized state aid for such projects to roughly €12.8 billion across the bloc.