Onsemi Cancels $2 Billion Czech Chip Facility Expansion

ON Semiconductor Corporation and the Czech Ministry of Industry and Trade canceled a planned $2 billion expansion of a chip facility in Rožnov pod Radhoštěm. The project, which was first announced in June 2024, intended to establish an integrated manufacturing hub for end-to-end silicon carbide production.

Both parties attributed the reversal to evolving market dynamics, shifting industry conditions, and project economics. Karel Havlíček, the First Deputy Prime Minister and Minister of Industry and Trade, stated that the decision reflects current global semiconductor market conditions.

Existing silicon and silicon carbide operations at the Rožnov plant will remain fully operational. Onsemi plans to maintain capital investments and hiring at the Rožnov facility and its Brno development center to support applications in artificial intelligence data centers, industrial sectors, and the automotive industry.