onsemi to invest $1 billion in Gyeonggi research center

U.S. chipmaker onsemi agreed to invest 1.4 trillion won ($1 billion) into building a new research center and manufacturing facility in Bucheon, Gyeonggi, to produce power chips by 2025.

Gyeonggi Governor Kim Dong-yeon, center, signs an agreement to build onsemi's research center and manufacutring facility in Bucheon, Gyeonggi with Wei-Chung Wang, executive vice president at onsemi, on the right, on Thursday. [GYEONGGI PROVINCIAL GOVERNMENT]

U.S. chipmaker onsemi agreed to invest 1.4 trillion won ($1 billion) into building a new research center and manufacturing facility in Bucheon, Gyeonggi, to produce power chips by 2025.

The Gyeonggi provincial government announced on Thursday that it signed a memorandum of understanding with the Pheonix, Arizona-based onsemi and held a ceremony to celebrate the commencement of construction of the manufacturing facility.

The chip supplier will make power chips using silicon carbide — also known as SiC power semiconductors — and they will be deployed in electric vehicles.

Compared with chips made up entirely of silicon, silicon carbide-based semiconductors deliver superior power switch performance in harsh environments, such as in hot temperatures or when dealing with high voltages.

The new site could create 500 jobs, according to the provincial government.

Alongside with the plan, onsemi will purchase 350-billion-won worth of raw materials, equipment and components from local suppliers, it said.

Given that the province is home to manufacturing complexes by Samsung Electronics and SK hynix, major semiconductor players select the region as a location for research and production sites.

Applied Materials, a Santa Clara, California-based chip equipment maker, agreed to establish a research center in Gyeonggi, although details including the size of investment are not available.

Netherland’s ASML plans to build a distribution and training center in Hwaseong, Gyeonggi, a project that will cost 240 billion won.

U.S. equipment supplier Lam Research opened a research center in Yongin back in April.

BY PARK EUN-JEE [park.eunjee@joongang.co.kr]