The Sleepy Czech Town Helping Europe Compete in the Global Chip War
A 2 billion investment by a US company promises to create a tech hub in a quiet corner of the Czech Republic.
Roznov pod Radhostem, a small town nestled in the foothills of the Beskydy Mountains, was once best known for its traditional wooden houses, open-air museum, and the local rum-soaked pastries called frgál.
But all that changed in 2021 when Wolfspeed, a North Carolina-based semiconductor manufacturer, announced plans to invest $2 billion to build a new chip-making plant in the town.
The investment sent shockwaves through the sleepy town of just 17,000 people, but it also signaled a sea change in Europe’s ambitions to become a major player in the global chip industry.
Why is this investment so significant?
The global chip industry is currently dominated by a handful of Asian companies, primarily from Taiwan and South Korea.
The COVID-19 pandemic has exposed the vulnerability of this supply chain, with disruptions causing shortages and price increases of everything from cars to smartphones.
Europe has long been lagging behind in chip production, but the Wolfspeed investment could help change that.
What will the new chip plant mean for Roznov pod Radhostem?
The new chip plant is expected to create around 2,000 new jobs in Roznov pod Radhostem, as well as many more indirect jobs in the surrounding area.
It will also bring new investment and infrastructure to the town, helping to transform it into a hub for the tech industry.
The plant is expected to start production in 2024, and Wolfspeed has already begun construction on the site.
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