The United States and China are currently fighting the “Chip War”, strong competition in the semiconductor segment. But, This scenario could change in the coming years. A small town in the Czech Republic could put Europe at the center of this “fight” for technology and production inputs.
With little more than 16 thousand inhabitants, Rožnov pod Radhoštěm was chosen by the American company Onsemi to be the factory producing the material. The objective of the investment is to build a chip hub to serve the electric car and renewable energy industry.
With installation and production within the European Union, Europe's dependence on US commodities and markets would drop significantly. But, furthermore, the factory will generate new jobs and qualified labor. Yet, the venture will be able to protect Europeans against possible price fluctuations and sanctions on the Chinese market.
10 millions of chips
At the moment, the sources of investment for the new factory are still under discussion between the company and the government of the Czech Republic and the European Union. Nonetheless, Onsemi has already invested US$ 2 billion (R$ 10,81 billion) in Rožnov. The price is lower when compared to other locations in Europe.
But, despite that, the promise is that the scenario will be positive because employees will effectively participate in the technology development process. The prediction is that 10 millions of chips are made daily for the automotive sectors, industrial and telecommunications, serving companies like Apple, Samsung, Mercedes-Benz and BMM.
For that, will be hired 2,2 thousand employees. Moving forward with the project, a chip supply contract has already been signed with the Volkswagen brand. Jozef Sikela, Minister of Industry and Commerce of the Czech Republic, spoke about the importance of this project.
“Semiconductors are the backbone of the modern economy. The more of these technologies we can produce nationally, better for the security of our economy”, stated.
City will receive new investments
Nonetheless, the process for the factory to start its activities will be slow. That's because, before its operation, the Czech city will need to build housing, schools and hospitals to accommodate the new workforce expected with this investment.
Onsemi has already established 800 new jobs for 7 first years of operation of the factory. That's why, Mayor Jan Kucera claimed that even 400 new apartments will be built and US$ 85 million (R$ 459,6 million) investments will be reverted to parks, roads and other services.
