Czech Town Pins Economic Hopes on $2 Billion Chip Plant

A small Czech town, previously known for its traditional pastries and historical architecture, has become the center of attention after US chipmaker ON Semiconductor Corp. chose it for a new $2 billion manufacturing hub. This investment, the largest by a foreign company in the Czech Republic in 30 years, is significant not just for the town and the Czech economy, but also for the European Union`s efforts to secure its supply of critical components. The facility will produce chips for electric vehicles and renewable energy, with Volkswagen AG already signed on as a customer. While the investment itself is relatively small, the existing facility already plays a crucial role in the company by both designing and producing semiconductors. This expansion is expected to significantly increase revenue and shift the Czech economy towards more profitable industries. However, the town faces the challenge of accommodating the expansion, with plans to build new housing and improve infrastructure to support the influx of workers and their families.