American onsemi has abandoned the expansion of its plant in the Czech Republic, where it planned to invest up to $2 billion. The project was intended to strengthen European production of power semiconductors for electric vehicles, energy, and data centers.

On November 6, onsemi and the Czech Ministry of Industry and Trade announced the abandonment of the planned expansion of the site in Rožnov pod Radhoštěm. The company explained the decision by changes in the global silicon carbide market situation and the economics of the project itself. Existing production will continue to operate.

The original plan was presented on June 19, 2024, as one of the largest private investments in Czech history. The investment of up to $2 billion was expected to be made over several years on the basis of the existing facility, creating a complete production cycle for silicon carbide semiconductors.

Such power components are used for converting and managing electrical energy. They help improve the energy efficiency of electric vehicles, renewable energy equipment, and data centers. The expansion was to combine stages from growing silicon carbide crystals to producing finished components.

The project also had pan-European significance. In November 2025, the European Commission approved Czech state aid of €450 million. As the state agency CzechInvest explained at the time, the provision of aid still required a decision by the Czech government. The European approval allowed support but did not in itself mean the transfer of funds to the company.

Czech authorities expected that the investment would create skilled jobs and orders for local suppliers, as well as expand cooperation with universities and research organizations. For European industry, the goal was to strengthen domestic semiconductor supplies and reduce dependence on external producers.

At the same time, onsemi stressed that the decision to forego expansion is not related to an assessment of the Czech investment climate. The decision does not affect the existing production of silicon and silicon carbide semiconductors in Rožnov. The company also expects further investments and hiring at the sites in Rožnov and Brno, but specific amounts and timelines were not named in the statement.

Sources: onsemi and the Czech Ministry of Industry and Trade, original investment announcement, CzechInvest.