Onsemi cancels $2 billion semiconductor expansion in Czech Republic

Onsemi and the Czech Ministry of Industry and Trade have agreed to terminate a multi-year brownfield investment project intended to expand silicon carbide (SiC) production at the company’s Rožnov pod Radhoštěm site. The project, originally announced in June 2024, was projected to cost up to $2 billion to establish end-to-end SiC production for advanced power semiconductors.

Onsemi cited evolving SiC market conditions and project economics as the reasons for the cancellation. Despite the decision, the company stated that existing manufacturing operations in Rožnov will continue unaffected and remain a vital part of its global footprint. Onsemi also indicated plans to continue investing in and hiring at both its Rožnov and Brno locations to support sectors such as automotive, industrial, and AI data centers.

Karel Havlíček, the First Deputy Prime Minister and Minister of Industry and Trade, noted that the decision reflects the current global semiconductor market situation but emphasized the value of the ongoing cooperation and R&D activities within the Czech Republic.