onsemi Cancels $2 Billion Czech SiC Expansion, Maintains Existing Production
The company has abandoned its planned silicon carbide manufacturing expansion in Rožnov as market conditions change, but will continue operations and investment in the Czech Republic.
US semiconductor manufacturer onsemi has cancelled its proposed $2 billion silicon carbide (SiC) manufacturing expansion in the Czech Republic following discussions with the country's Ministry of Industry and Trade.
The decision, announced on 6 November 2026, ends plans to establish additional end-to-end SiC power semiconductor production at the company's existing facility in Rožnov pod Radhoštěm.
The project was originally announced in June 2024 as a multi-year investment intended to expand Europe's manufacturing capacity for power semiconductors used in electric vehicles, renewable energy systems and artificial intelligence data centres.
According to onsemi, changes in global SiC market conditions and the economics of the proposed investment prompted the decision. The company stressed that the cancellation does not reflect concerns about the Czech Republic's investment environment.
Existing Semiconductor Manufacturing to Continue
Although the expansion will not proceed, onsemi confirmed that its existing silicon and silicon carbide manufacturing facilities in Rožnov will remain operational.
The site continues to form part of the company's international semiconductor manufacturing network, supporting customers across automotive, industrial and other electronics markets.
onsemi also expects to continue investing in its operations in Rožnov and Brno, including recruitment and the development of manufacturing and research capabilities.
The company said both locations remain important to its long-term strategy, particularly as demand for power management technologies increases across data centres, industrial equipment and emerging applications.
The announcement does not include revised investment figures or a timetable for additional projects at either location.
Market Conditions Prompt Review of SiC Investment
The cancelled project was announced on 19 June 2024, when onsemi outlined plans to invest up to $2 billion in developing a vertically integrated SiC manufacturing operation in the Czech Republic.
The proposed expansion was intended to bring additional power semiconductor production and advanced packaging capabilities to Central Europe.
At the time, onsemi identified electric vehicle adoption, renewable energy development and increasing electricity requirements in data centres as important sources of demand.
The project was also expected to strengthen the regional supply chain for SiC power devices, which offer advantages over conventional silicon components in high-voltage and high-temperature applications.
However, the commercial outlook for SiC has changed since the initial announcement.
The company's latest decision indicates that the expected returns from the planned expansion no longer justify proceeding under current market conditions.
onsemi has not disclosed a revised production capacity target or announced an alternative location for the cancelled investment.
Czech Government Reaffirms Semiconductor Partnership
Karel Havlíček, First Deputy Prime Minister and Minister of Industry and Trade of the Czech Republic, acknowledged that the decision reflects current conditions in the international semiconductor market.
He said the continuation of onsemi's existing manufacturing operations in Rožnov remains important to the country.
Havlíček also welcomed the company's intention to maintain research and development activities and pursue further investment in Rožnov and Brno.
The Czech government continues to regard semiconductor manufacturing as an important part of its industrial development strategy, particularly in areas connected to automotive electronics, advanced materials and power devices.
onsemi's decision removes one of the country's previously announced large-scale SiC investment projects, although it does not affect the company's established production activities.
onsemi Reports Growth in AI Data Centre Business
The cancellation follows onsemi's third-quarter financial results, released on 2 November 2026, which showed stronger revenue and earnings.
The company reported quarterly revenue of $1.72 billion, up 11% from the corresponding period in 2025.
Non-GAAP gross margin reached 41.2%, while non-GAAP diluted earnings per share increased to $0.90.
onsemi also reported that revenue from its AI data centre business grew 39% sequentially and 175% year on year, reflecting higher demand for power semiconductor products used in computing infrastructure.
The results suggest that the company's decision to cancel the Czech SiC expansion is not the result of a broad decline across all its semiconductor markets.
Instead, onsemi is reassessing the economics of individual manufacturing investments while continuing to develop products for automotive, industrial and AI applications.
SiC Manufacturing Investment Faces Greater Scrutiny
The cancellation highlights the importance of production costs, manufacturing utilisation and long-term customer demand when planning large semiconductor facilities.
SiC devices are used in electric vehicle powertrains, charging infrastructure, renewable energy equipment and industrial power conversion systems.
However, expanding manufacturing capacity requires substantial investment in crystal growth, wafer processing, device fabrication and supporting equipment.
For SiC manufacturers, investment decisions depend on whether expected demand and selling prices can support those costs over the operating life of a facility.
The decision is also relevant to semiconductor materials and equipment suppliers across Asia, where companies participate in SiC wafer production, epitaxy, fabrication and packaging.
Changes to major expansion projects can affect equipment procurement schedules, supplier contracts and future manufacturing capacity.
For onsemi, the immediate priority will be maintaining its existing Czech operations while directing investment towards areas that offer stronger commercial returns.
The company's future capital expenditure decisions will provide further evidence of how it intends to balance SiC manufacturing capacity with growing demand for power semiconductor technologies in AI data centres and industrial markets.
