Onsemi cancels silicon carbide chip expansion in Rožnov pod Radhoštěm

American semiconductor manufacturer onsemi canceled its plans to build a two billion dollar silicon carbide chip production expansion in Rožnov pod Radhoštěm, Czech Republic, shifting strategy due to changing conditions on the global market. idnes.cz reported the decision, which halts a project originally valued at roughly 43.5 billion Czech crowns and introduced in June 2024.

Market Shifts Force Strategic Reversal

The company issued a press release stating that the cancellation stems directly from the current development of the global silicon carbide market and shifting project economics. onsemi emphasized that the reversal does not reflect the investment climate in the Czech Republic, which the firm called an important part of its long-term manufacturing and growth strategy. Current operations at the Rožnov facility, which traces its manufacturing roots back to the former state-owned TESLA enterprise and produces silicon and silicon carbide wafers alongside automotive electronics, will continue unaffected.

Municipal Adjustments in Rožnov pod Radhoštěm

Rožnov mayor Jan Kučera called the cancellation a bad outcome for the community but noted that local officials anticipated potential setbacks. The municipality had established a preparatory framework named the MiliJarda plan, divided into three distinct stages. The first stage utilized projects the town needed regardless of the plant expansion to support future industrial growth. Subsequent stages, however, are now shelved. Kučera stated that the town avoided extra expenditures tied directly to the canceled expansion, meaning the municipal budget remains unaffected. The Rožnov plant previously underwent workforce reductions, with 149 of the 170 employees laid off across the Czech Republic in April 2024 coming from the main Rožnov facility, followed by another round affecting roughly 200 workers in May 2025.

Political Repercussions in Prague

Politicians in Prague traded sharp reactions following the announcement. Minister of Industry and Trade Karel Havlíček maintained that ongoing production in Rožnov and other domestic investments by onsemi remain secure. Former Minister for Local Development Ivan Bartoš criticized the outcome, labeling the cancellation a distinct loss, while former Lukáš Vlček had previously expressed confidence that the 43.5 billion crown investment would proceed.