ON Semiconductor Cancels $2 Billion Czech SiC Expansion Plan
nashnova research
ON Semiconductor is walking away from a up-to-$2 billion silicon-carbide expansion in the Czech Republic, citing a shift in market conditions and project economics since 2024 — a direct signal that EV demand for SiC power chips has slowed below expectations.
What was the plan?
ON Semiconductor planned to expand its existing site in Roznov pod Radhostem, Czech Republic, into a fully integrated SiC production base.
Silicon carbide — a semiconductor material tougher than standard silicon, used mainly in EV powertrains and industrial power systems — would be processed from crystal growth to finished power chips at a single site.
The project, announced in 2024, carried a price tag of up to $2 billion.
Why pull the plug now?
ON Semi cited changes in global market dynamics and project economics since the 2024 announcement.
This means → the EV market's uptake of SiC power devices has been slower than expected, and downstream demand no longer justifies the spend.
In plain terms = the math done in 2024 no longer works — customers aren't buying fast enough for the investment to pay itself back.
What happens to the existing Czech operations?
ON Semi said its current silicon and SiC manufacturing in Roznov remains unaffected.
The site stays in the company's global production network, with continued investment and hiring planned.
It will keep serving automotive, industrial, and AI data-center applications.
This means → the cut is to the incremental expansion, not the existing lines — ON Semi's Czech footprint stays operational.
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