The semiconductor market is projected to increase by half to 75 billion crowns by 2029 in the Czech Republic.
For companies operating within the Czech Republic, these developments offer multiple benefits. First, the increasing demand for semiconductors, particularly from the automotive and transportation sectors, highlights the market’s potential for growth. The fact that only 16% of domestic demand is currently met by local production points to a substantial opportunity for expansion, particularly for companies that invest in filling this gap.
Furthermore, the National Semiconductor Strategy, which the Czech government approved on 10th October, aims at allowing the Czech Republic to become one of the centres of chip production. According to the strategy, greater independence at a country level should be achieved in order to lower the risk associated with the geographical distribution of production plants.
Other goals stated in the strategy refer to the increase of the number of workers in the semiconductor industry up to 9000 people, and the willing to increase the export share of semiconductor technologies by 200%, which opens up avenues for businesses to tap into a larger, well-trained talent pool while also expanding their reach in global markets.
Five crucial areas are set to contribute to achieving the strategic objectives.
The first focuses on implementing a European Chips Act and establishing a national competence center, which will serve as a gateway to the European ecosystem, promoting research, development, and innovation in the semiconductor field.
The second area is dedicated to boosting exports, while the third supports advancements in research and development. The fourth aims to expand the talent pool within the semiconductor sector in the Czech Republic, and the fifth seeks to foster business growth in this industry.
Nowadays, the European Union accounts for 10% of the global production in the semiconductors industry. This share is expected to double by 2030 according to the goals set by the European Commission. In order to be aligned with the European objectives, strategic investments are essential for building the necessary capacities in the Czech Republic to engage in this development. While research and development are critical priorities, it is equally important to focus on workforce training and attracting skilled professionals from abroad.
The Czech Republic currently hosts two semiconductor component manufacturing plants, both owned by foreign companies. One is a smaller facility located in Prague, while the larger one is situated in the Zlín Region. These plants focus on producing analog integrated circuits and discrete semiconductors. However, the country does not manufacture memory chips, logic integrated circuits, or micro-integrated circuits. Despite this, the Czech industry is capable of designing logic and micro-integrated circuits.
Eventually, the Czech Republic’s focus on fostering a robust semiconductor industry will not only help meet domestic demand, but rather position the country as a significant player in the global semiconductor market. Companies that seize the opportunity to participate in this growth stand to benefit from both the strategic location within Europe and the government’s clear commitment to expanding the industry.
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