Onsemi Expanding in Rožnov; Massive Investment & Rising Housing Sales

Onsemi Expanding in Rožnov; Massive Investment & Rising Housing Sales

March 7, 2025 Catherine Williams - Chief Editor Business

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<a href="https://www.onsemi.com/careers" title="Careers - onsemi" target="_blank" rel="noopener">Onsemi</a>‘s Investment in Rožnov Under Scrutiny Amid Layoffs

Onsemi’s Investment in Rožnov Under Scrutiny Amid Layoffs

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The town of Rožnov pod Radhoštěm is facing a mix of anticipation and uncertainty as onsemi, the American chip manufacturer, navigates global economic headwinds. While the company previously announced a significant investment in its local plant, recent developments have cast a shadow over the region’s economic prospects.

Investment Promise and Initial Optimism

Last year, Onsemi revealed plans to invest two billion U.S. dollars—approximately 47 billion Czech crowns—into its Rožnov facility. This announcement sparked optimism, with projections of attracting up to three thousand new residents to the area. The investment was expected to fuel substantial progress in Rožnov pod Radhoštěm, including new housing and infrastructure projects.

Global Challenges Lead to Layoffs

Though, rather of expansion, Onsemi is now implementing layoffs, reflecting the impact of global economic challenges on the Valachia region. Doubts are emerging about the realization of the announced investment in the Rožnov plant.

Onsemi’s financial performance in 2024 indicates the difficulties it faces. Revenues decreased by 14.2 percent year-on-year, falling to seven billion U.S. dollars. Net profit declined by 28 percent to 1.6 billion. The company’s stock value has also suffered, dropping by 37 percent over the past six months to $44.5 per share. The reduced demand for semiconductors in the automotive industry, which, according to the Wall Street Journal, accounts for approximately half of Onsemi’s revenue, is considerably impacting the company.

Restructuring and Workforce Reduction

In Febuary, Onsemi’s management announced a restructuring plan that will eliminate approximately 2,400 jobs across its global operations this year. This measure aims to save between 105 and 115 million U.S. dollars annually. At the end of last year, Onsemi employed around 26,400 full-time employees in 33 countries.These layoffs mark the third round of workforce reductions as 2023.

according to internal sources, the cost-saving measures will affect the Rožnov plant, with nearly 170 employees out of 1,700 expected to lose their jobs.

Official Stance on Investment

Despite the layoffs, Onsemi maintains that the investment plans remain unchanged. The company stated, “Nadále spolupracujeme s Evropskou komisí a Českou republikou na procesu podávání žádostí o veřejnou podporu,” (We continue to work with the European Commission and the Czech Republic on the process of applying for public support.)

onsemi has been cautious in its public statements regarding the layoffs in Rožnov. “V

OnsemiS Investment in Rožnov: Q&A on Layoffs and Future Plans

Rožnov pod Radhoštěm is at a crossroads, balancing the promise of significant investment from semiconductor manufacturer Onsemi with the reality of recent layoffs.This Q&A explores the current situation, addressing key questions about Onsemi’s plans and their impact on the region.

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What was Onsemi’s planned investment in Rožnov?

Onsemi announced plans to invest approximately two billion U.S. dollars (around 47 billion Czech crowns) into its Rožnov pod radhoštěm facility. This investment was intended to expand the plant’s capabilities and contribute to the local economy.

Why is Onsemi implementing layoffs in Rožnov?

Onsemi is implementing layoffs as part of a global restructuring plan in response to current global economic headwinds and a downturn in the semiconductor market, particularly reduced demand from the automotive industry. This reflects broader challenges in the Valachia region.

How many employees in Rožnov are affected by the layoffs?

According to internal sources, nearly 170 employees out of the 1,700 at the Rožnov plant are expected to lose their jobs as part of Onsemi’s cost-saving measures.

How has Onsemi’s financial performance been recently?

Onsemi’s financial performance in 2024 reflects the challenges it faces:

  • Revenues decreased by 14.2 percent year-on-year to seven billion U.S. dollars.
  • Net profit declined by 28 percent to 1.6 billion U.S. dollars.
  • The company’s stock value has dropped by 37 percent over the past six months to $44.5 per share.

What is Onsemi’s restructuring plan?

Onsemi’s management announced a restructuring plan in February that will eliminate approximately 2,400 jobs across its global operations this year. The goal is to save between 105 and 115 million U.S. dollars annually. this is part of the third round of workforce reductions since 2023.

Summary of Onsemi’s Situation in Rožnov

Aspect Details
Investment Plan $2 Billion USD (approx.47 billion Czech crowns) in Rožnov facility.
Layoffs approximately 170 employees affected in Rožnov.
Global Restructuring Eliminating 2,400 jobs worldwide to save $105-115 million annually.
financial Performance Revenue down 14.2%, Net Profit down 28%, Stock Value down 37%.
Official Stance Investment plans remain unchanged; working with EU and Czech Republic on public support application.

How does the automotive industry impact Onsemi?

The automotive industry significantly impacts Onsemi, as approximately half of Onsemi’s revenue comes from the automotive sector. Reduced demand for semiconductors in the automotive industry has considerably affected the company’s financial performance.

What is Onsemi’s official statement regarding the investment?

Despite the layoffs, Onsemi maintains that its investment plans for the Rožnov facility remain unchanged. the company has stated it is indeed continuing to work with the European Commission and the Czech Republic on the process of applying for public support.Onsemi has, though, been cautious in its public statements regarding the layoffs in Rožnov.

What does the Rožnov plant specialize in?

according to onsemi’s career page, the Rožnov fab specializes in the manufacturing of digital and analog integrated circuits primarily for bipolar technologies supporting automotive, computer, and portables end-markets. The Rožnov site also supplies raw silicon wafers for use within onsemi. The company also expanded its silicon carbide (SiC) fab in Roznov.

is Onsemi seeking public support for its investment?

Yes, Onsemi is actively working with the European Commission and the czech Republic to apply for public support for its investment in the Rožnov facility. The extent and nature of this support are currently under discussion.