US chipmaker onsemi and the Czech Ministry of Industry and Trade confirmed on 6 November 2026 that they will not proceed with the planned brownfield expansion to add end‑to‑end silicon‑carbide (SiC) production at onsemi’s Rožnov pod Radhoštěm site. The project, first announced in June 2024, had been described at the time as a multi‑year investment of up to $2 billion (about CZK 43.5 billion at current rates).
Why the plans were dropped
Onsemi’s statement said the decision reflects “the evolving dynamics of the global SiC market and project economics” and that existing manufacturing at Rožnov would continue unaffected; the company added it still expects to invest and hire at its Rožnov and Brno sites. Czech industry and local officials reacted cautiously, with Rožnov’s mayor calling the cancellation “bad news for the town, the region and the country.”
The Rožnov project had previously secured sizable public support: the European Commission approved around €450 million in Czech state aid for an integrated SiC facility in Rožnov in a decision published on 21 November 2025, citing the importance of SiC for electric vehicles, fast chargers and renewable energy equipment. That approval framed the Rožnov plant as a first‑of‑a‑kind step to reduce Europe’s reliance on non‑EU SiC supply.
Immediate regional implications
The scrapped expansion removes a near‑term prospect for a European‑based, end‑to‑end SiC supply chain that carmakers and suppliers in Central and Eastern Europe have been counting on to secure high‑voltage power electronics for EV inverters and on‑board charging. Analysts and trade outlets note the move underscores how fast‑changing SiC economics and demand patterns can upend large strategic projects. onsemi and Czech authorities say current Rožnov production and R&D activities will continue.
What this means for the market
For Central and Eastern Europe’s car industry the cancellation matters because SiC chips are a key enabling component for higher‑efficiency electric powertrains and fast charging. Without the planned Rožnov capacity coming online, OEMs and tier‑one suppliers across the region may face longer lead times or greater reliance on Asian suppliers for SiC devices — a supply pattern the European Chips Act and prior EU state‑aid approvals had sought to correct. At the same time, onsemi’s pledge to maintain existing operations and pursue other investments in Rožnov and Brno means some local supply and engineering activity will continue, but the scale and timing of future European SiC capacity remains uncertain.
Local officials and the Czech ministry framed the decision as commercially driven and not a reflection on the Czech investment environment. The European Commission’s earlier approval of close to €450 million in aid — aimed at boosting EU autonomy in power semiconductors for green technologies — highlights the policy stakes now left unresolved by the project's end.
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Sources: onsemi, Radio Prague International
