The European Commission approved a €450 million grant on November 24, 2025 to support ON Semiconductor’s new silicon‑carbide (SiC) chip facility in Rožnov pod Radhoštěm, Czech Republic. The facility will be the first integrated SiC plant in the EU, covering wafer fabrication, packaging, and testing in a single site.
The grant is a key component of the EU Chips Act, which aims to increase the bloc’s share of global semiconductor manufacturing and reduce dependence on external suppliers. By securing this funding, ON Semiconductor can accelerate the construction of a €1.64 billion project that is expected to begin commercial operations in 2027, positioning the company to meet growing demand for SiC power devices in electric‑vehicle power electronics, industrial automation, and AI‑data‑center power solutions.
ON Semiconductor’s Q3 2025 earnings, released on November 3, showed revenue of $1.5509 billion, down 6.9% from $1.7619 billion in Q3 2024, and a GAAP gross margin of 37.9%, a decline from 45.4% the prior year. Despite the margin compression, the company posted an EPS of $0.63, beating analyst expectations of $0.59 by $0.04. The earnings beat was largely driven by disciplined cost management and a favorable product mix that favored higher‑margin SiC components, offsetting the revenue decline.
Segment analysis revealed that the Power Solutions Group (PSG) contributed the largest share of revenue, driven by strong automotive and industrial demand, while the Advanced Mobility Group (AMG) and Intelligent Sensing Group (ISG) saw modest growth. The company’s AI‑related revenue doubled year‑over‑year, reflecting expanding data‑center deployments, and is projected to reach $250 million in 2025.
CEO Hassane El‑Khoury emphasized that the new facility will “enable us to scale our SiC portfolio, secure supply chains, and capture market share in high‑margin power‑semiconductor segments.” He added that the company remains focused on cost discipline while investing in high‑return verticals such as automotive, industrial, and AI data centers.
Following the Q3 2025 earnings release, the market reacted with a 1.9% decline in pre‑market trading, indicating that investors were looking for stronger forward guidance despite the earnings beat. The EU grant, however, signals a long‑term strategic advantage that could offset short‑term headwinds and support future growth.
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