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Onsemi cancels its $2 billion Rožnov chip expansion

Onsemi and Czechia have ended the planned silicon carbide expansion in Rožnov. What changes for the plant, the approved state aid and Czech suppliers?

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Predrag Pavič

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On 6 November 2026, onsemi and the Czech Ministry of Industry and Trade confirmed that the proposed silicon carbide expansion in Rožnov pod Radhoštěm will end. The US chipmaker had announced a multiyear investment of up to $2 billion in 2024 to add a full production chain to its existing site. Onsemi says its current silicon and silicon carbide manufacturing in Rožnov will continue. Joint announcement from onsemi and the Czech ministry

When we covered Rožnov in September, the project was still under review. The November decision settles the question hanging over that report. For suppliers, the distinction is practical. Work tied to building the integrated facility loses its original basis, while orders and service requirements at the operating plant depend on its own production plans. Kodo’s September coverage of the Rožnov investment

The proposed plant and the approved grant

The expansion would have taken silicon carbide, or SiC, from crystal growth through to finished power devices at one site. These devices help control and convert electricity efficiently in equipment such as electric vehicles, fast chargers and industrial power systems. Producing them at scale requires an investment decision that spans several stages, from preparing the material to manufacturing the devices. Onsemi’s original June 2024 announcement

FigureWhat it describes
Up to $2 billionThe investment ceiling onsemi announced in June 2024, then put at about CZK 44 billion.
€1.64 billionThe investment figure the European Commission used when assessing the notified Czech project in November 2025.
About €450 millionThe Czech direct grant the Commission approved for that project under EU state aid rules.

The Commission’s decision authorised Czechia to support the specified project. Payment is a separate matter. The cancellation announcement gives no payment or settlement details, and the approved grant was tied to the integrated facility described in the Commission’s decision. European Commission decision summary, case SA.117291

Why the economics changed

Onsemi and the ministry point to changes in the global SiC market and in the economics of the proposed expansion. Lupa’s reporting highlights lower-cost wafer competition from China and points to earlier reports of some equipment moving from Czechia to Asia. The company’s November announcement gives no site-by-site account of future wafer sourcing. Joint announcement, Reporting by Jan Sedlák for Lupa

The 2 November SEC filing provides a separate piece of evidence. Onsemi reported $72.4 million in impairment charges on assets held in Czechia for the first nine months of 2026. The company classified the equipment as held for sale after deciding it was surplus to expected long-term customer demand. Onsemi’s quarterly filing, Note 5

What stays in Rožnov and Brno

Rožnov remains a manufacturing site with design activity. Brno has an established design centre focused on automotive integrated circuits. The joint announcement says onsemi expects further investment and hiring at both sites, with applications spanning automotive, industry and AI data centres. It gives no budget, headcount or timetable for that work. Onsemi’s Czech operations, Joint announcement

The Codasip transaction helps explain why design deserves its own place in this story. In May, onsemi completed the acquisition of a RISC-V processor IP business from Codasip, a move to add computing design capability. Then, on 2 November, it announced an agreement to buy Ferric, a specialist in power delivery to processors. The Ferric agreement illustrates the group’s push into AI infrastructure, while the November statement leaves the next Czech projects to be specified. Kodo’s analysis of the Codasip deal, Onsemi’s Ferric announcement

For Rožnov itself, the cancellation removes the prospect of the expansion at the scale announced in 2024. Mayor Jan Kučera told Czech Television’s news service that the city had incurred no extra expenses specifically for the project. That leaves room to assess the local impact separately from the headline investment figure. ČT24 reporting on the mayor’s response

What suppliers can check now

  • For work on the planned expansion, revisit forecasts that assumed new cleanrooms, additional utilities or new equipment lines. Confirm the status of individual tenders and orders with the buyer.
  • For the operating Rožnov site, ask which production lines and service schedules your work supports, and whether the customer has issued a revised forecast.
  • For engineering work in Rožnov or Brno, look for named teams, job openings and specific requests for proposals as evidence of which plans are moving forward.

Kodo helps international companies assess Czech markets, find local partners and coordinate work in Czechia. If your plans depend on a particular site or buyer, we can help you check which opportunities are active and identify the people responsible locally. Contact Kodo

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