onsemi cancels $2 billion silicon carbide expansion in Czech Republic

Semiconductor manufacturer onsemi has announced the cancellation of a planned $2 billion expansion of its silicon carbide (SiC) production facility in Rožnov, Czech Republic. The project, originally announced in June 2024, aimed to establish a complete production chain for SiC semiconductors.

The company cited changes in the global silicon carbide market as the primary reason for the decision. onsemi stated that the move does not reflect the investment environment in the Czech Republic, which remains a key part of its long-term manufacturing and growth strategy. Existing production in Rožnov and Brno will continue, and the company maintains its commitment to its Czech operations and employees.

Czech Industry and Trade Minister Karel Havlíček noted that the decision reflects current semiconductor market conditions. Local officials in Rožnov expressed disappointment, as the expansion was viewed as a significant opportunity for the region, though the city's budget remains unaffected by the cancellation.