March 12, 2025 /SemiMedia/ — onsemi will lay off about 170 employees in the Czech Republic, including 149 at its Rožnov pod Radhoštěm plant, as part of its ongoing restructuring. The affected employees are set to leave in April.

The layoffs come amid onsemi’s broader global restructuring efforts. In February, the company announced plans to cut 2,400 jobs worldwide, marking its third round of layoffs since 2023. onsemi’s 2024 revenue fell 14.2%, with net income down 28%, while its stock price has declined significantly over the past six months. The downturn is primarily attributed to weakening demand for automotive chips, which account for about 50% of the company’s revenue.

Despite the job cuts, onsemi maintains its commitment to a $2 billion investment in the Rožnov plant and continues to work with the European Commission and the Czech government to secure public subsidies. The company stated that the plant remains a key production site in Europe and an integral part of its global strategy.

However, industry insiders are skeptical about the project's viability. A source familiar with onsemi’s plans noted that the project has already been delayed by 1.5 years, and the current market conditions are less favorable for investment. The source has even decided to sell property in Rožnov, citing concerns over falling real estate values if the investment does not materialize.

The investment hinges on the Czech government's ability to secure EU subsidies. The government previously granted onsemi CZK 546 million ($24 million) and is awaiting European Commission approval for additional support, with plans to submit the proposal for cabinet review by June.

Amid the uncertainty, onsemi continues expanding in other areas. According to reports, the company is bidding to acquire Allegro MicroSystems in a deal potentially worth several billion dollars. If successful, onsemi may establish a second chip design center in the Czech Republic, complementing its existing R&D facility in Brno.