ON Semiconductor and the Czech Ministry of Industry and Trade agreed to halt a $2 billion silicon carbide expansion in the Czech Republic. Both sides cite shifting market dynamics and project economics. Existing operations at the Rožnov facility continue.
ON Semiconductor (NASDAQ:ON) has abandoned a multi-year, $2 billion expansion in the Czech Republic, agreeing with local authorities to halt the silicon carbide project. The company first unveiled the plan in June 2024.
The project aimed to build an integrated manufacturing hub in Rožnov pod Radhoštěm, covering silicon carbide production from crystal growth through finished power semiconductors. Onsemi and the ministry confirmed that evolving market dynamics and project economics led both sides to conclude the planned buildout.
However, the company says the cancellation does not touch current operations. Existing silicon and silicon carbide operations at Rožnov will remain fully operational, and management stated that the termination does not reflect regional operating conditions.
Onsemi also expects to continue hiring and capital investments at its Rožnov plant and Brno development center. The sites remain designated to support customer demand across automotive, industrial and artificial intelligence data center applications.
Czech officials echoed the decision. First Deputy Prime Minister and Minister of Industry and Trade Karel Havlíček said the move reflects current conditions across the global semiconductor market, and he pointed to Onsemi's continuing production and research presence in the country.
Source: Investing.com
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