Since 2025, the Czech Republic has seen a series of large-scale investment projects in the manufacturing sector by foreign companies. Investments in high-tech industries such as electric vehicles (EVs), batteries, and semiconductors stand out, with companies from Europe, the U.S., and Asia building new plants or expanding production capacity within the Czech Republic. This article organizes these investments by industry and country, while also touching on the background of why the Czech Republic is attracting attention and the government’s support measures.
New Investments in EVs and Batteries
Amid Europe’s growing demand for electrification, investments in the battery sector have been particularly active. C-TECH United of Taiwan, a major battery module manufacturer, announced in August 2025 the opening of its first European office in Prague and its plan to begin lithium-ion battery module production in the Czech Republic the following year. The company is also considering establishing an R&D center in Europe in the future, aiming to supply EV battery packs and battery systems for industrial energy storage from the Czech Republic. The reasons for choosing the Czech Republic include government support under the National Clean Mobility Action Plan, as well as the country’s geographic advantage in serving the European market. With assistance from the Czech investment promotion agency, the C-TECH case highlights the strategic appeal of the Czech Republic in clean mobility.
In March 2025, China’s Goldcup Electric, a major wire manufacturer, announced plans to invest about RMB 700 million (USD 96.7 million) to establish a new electromagnetic wire (magnet wire) factory in the Czech Republic. The company will acquire and renovate an existing facility, with an initial annual production capacity of 8,000 tons of electromagnetic wire, expected to begin operations in late 2025 or early 2026. By 2028, capacity is planned to increase to 20,000 tons annually, responding to growing demand driven by upgrades to Europe’s power grid and the EV market. This approx. JPY 10 billion Chinese investment will establish a new production base for energy-related components in the Czech Republic, expected to generate hundreds of jobs for the regional economy.
Expansion in High-Tech Manufacturing (Semiconductors and Electronics)
In June 2024, U.S. semiconductor maker onsemi announced plans to invest up to USD 2 billion to significantly expand capacity at its factory in Rožnov pod Radhoštěm, eastern Czech Republic. This is considered the largest single foreign investment in Czech history. The expansion will establish a fully integrated silicon carbide (SiC) semiconductor production system (from wafer processing to final module assembly), strengthening supply of high-performance power chips for automotive and renewable energy. Production is expected to begin in 2027, ensuring that critical EV and renewable energy components can be supplied from the Czech Republic to the whole of Europe. The Czech government has positioned this as a strategic project and is expected to provide investment incentives of up to 27.5% of the total investment. This aligns with the EU’s Chips Act and reflects the Czech Republic’s efforts to raise its profile in Europe’s semiconductor value chain.
In the electronics sector, Taiwan’s Ching Tai Electric Wire & Cable (CTi Cable) also announced in January 2025 its expansion into the Czech Republic. The company, a major supplier of high-performance cables and connectors, is investing about USD 4–5 million to build a new plant in an industrial park in Klecany near Prague, to serve the European market. The investment is expected to create more than 50 new jobs, producing cables and components for advanced fields such as AI, autonomous driving, aerospace, industrial automation, medical devices, and IoT. CTi established a local subsidiary, CTi Europe s.r.o., and prepared the investment with support from CzechInvest, the government’s investment and business development agency. By strengthening supply capacity from the Czech Republic, the company aims to become a “key player in the European market.” This case illustrates both the strength of the Czech Republic’s advanced manufacturing base and confidence in its investment environment.
Strengthening of Production Bases by European and American Companies
One example of European companies expanding their Czech operations is Switzerland’s Robatech, a manufacturer of adhesive application systems. In February 2025, the company opened a new factory in Znojmo, South Moravia. Robatech is globally known for its industrial adhesive solutions for woodworking and packaging. With the new Czech factory, it aims to shorten lead times for European customers and enhance cost competitiveness. The opening ceremony on February 21 was attended by local and central government officials, and the company’s owner emphasized that the facility represents “a commitment to growth, customer proximity, and sustainable innovation.” The plant, outfitted with modernized facilities, has already started operations. While current staffing is sufficient for initial production, the company is also developing local suppliers to prepare for future expansion. Though the scale is modest (estimated at several tens of millions of CZK), it is considered a strategic investment combining Swiss quality with local production. Czech government representatives welcomed it as “proof of trust in the Czech Republic as the center of Europe,” noting the new jobs and business opportunities for the region.
Additionally, in 2025, several European and U.S. companies announced expansions of existing Czech factories:
- Continental (ContiTech, Germany): Announced production transfer from German factories to the Czech Republic and other Central and Eastern European locations, supplementing and increasing Czech production capacity for automotive rubber and resin products such as conveyors and hoses.
- ZF Group (Germany): Received delivery of a 57,400 m² facility in the Ostrov North industrial park, Karlovy Vary region. The sustainably designed building will be used as a manufacturing and logistics base for e-mobility and chassis-related products (production ramp-up in phases). ZF also opened a “zero-emission factory” in Klášterec in 2024, expanding energy-saving operations into 2025.
- GE Aerospace (U.S.): As part of its 2025 European investment plan, invested about EUR 5.4 million into its Czech sites to increase capacity for turboprop engine parts (equipment upgrades and building renovations). This strengthens quality and delivery capabilities at its Prague turboprop center and across Czech sites.
- Saint-Gobain (France) / AGC joint project: In February 2025, officially launched the “Volta” flat glass production line at the AGC Barevka plant in Dubí, Teplice district, using the world’s first low-CO₂ next-generation furnace. Supported by the EU Innovation Fund, the line produces new energy-efficient, low-emission products for the European market.
- Toyota (Japan, reference): In September 2025, announced EUR 680 million investment in BEV production lines and a battery assembly building at its Kolín plant, with government support of up to EUR 64 million. (Although Japanese, this illustrates the framework of government incentives.)
Traditionally, Germany and the U.S. have been the largest sources of FDI in the Czech Republic, and as of 2023, they still topped the list by number of investment projects. This underscores the continued importance for the Czech Republic of attracting manufacturing investment from Western economies.
Government Support and Czech Competitiveness
The Czech government has made attracting investment in advanced manufacturing technologies a pillar of its national economic strategy, prioritizing sectors such as semiconductors, clean mobility (electrification), artificial intelligence, and advanced materials. In 2024, the “Economic Strategy – Czech Top 10” was formulated, presenting a vision to elevate the Czech Republic as a world-class innovation hub in these advanced fields. CzechInvest and ministries provide one-stop support for promising foreign investment projects, including site information, regulatory guidance, visa facilitation, and advice on subsidies and tax relief. The investment incentive scheme has also been strengthened, with the government prepared to support more than a quarter of onsemi’s total semiconductor investment. This demonstrates the Czech Republic’s determination to compete against countries like Germany and Italy, which are offering massive subsidies to attract semiconductor factories.
At the same time, the government is addressing infrastructure and process challenges. Efforts include promoting the development of industrial parks, simplifying and expediting permit processes, and strengthening infrastructure such as power supply. The government is also investing in power grid expansion and workforce development, while engaging closely with companies through aftercare to encourage reinvestment and expansion of existing projects.
Overall, since 2025, the Czech Republic has further enhanced its status as a “manufacturing hub of Europe.” For foreign manufacturers, the country’s central location, skilled workforce, strong industrial clusters, and proactive government support are major draws. In addition to increasing investment by Asian companies such as Taiwan and China, European and U.S. firms are also entrusting the Czech Republic with advanced manufacturing production. In Central Europe as a whole, it is estimated that 45 Korean and 22 Chinese companies have established or planned battery-related facilities, and the Czech Republic is actively attracting part of this influx. Looking ahead, amid geopolitical supply chain realignment (reshoring) in EVs, renewable energy, and semiconductors, manufacturing investment in the Czech Republic is expected to continue increasing. The Czech government intends to seize this opportunity to deepen cooperation with foreign investors and promote more strategic investments that will strengthen competitiveness and create jobs.
Reference:
https://www.reuters.com/technology/onsemi-invest-up-2-bln-czech-semiconductor-plant-2024-06-19
https://www.robatech.com/en/newsroom/new-production-site
https://www.investmentmonitor.ai/news/zf-opens-first-zero-emission-plant-czech-republic
https://apnews.com/article/onsemi-investment-czech-chips-9bae60b1397ffa0a3866a241eee8b4d9
https://industryinsider.eu/industry-news/ge-aerospace-to-invest-in-europe/
https://www.agc.com/en/news/detail/1208657_2814.html
https://www.agc-glass.eu/en/news/news/inauguration-revolutionary-volta-flat-glass-production-line
https://www.glassonline.com/agc-and-saint-gobain-inaugurate-volta-flat-glass-production-line/
https://newsroom.toyota.eu/toyota-announces-new-battery-electric-vehicle-to-be-produced-in-europe
