Amid intensifying competition from Chinese players, Onsemi is reportedly under mounting pressure, with up to 300 job cuts planned at its Rožnov pod Radhoštěm plant in the Czech Republic, according to local media outlet e15. The move follows an earlier round of layoffs in 2025, when the US-based SiC supplier reduced headcount by around 170 at the same facility, the report adds.
According to e15, the restructuring particularly affects specialists working on silicon carbide (SiC) semiconductors, which has gained strong attention in recent years due to its superior physical properties compared with traditional silicon, enabling higher energy efficiency in electric vehicles and more efficient power delivery for AI data centers.
Central News Agency, citing e15, highlights that while SiC wafer production still costs Western manufacturers around US$1,200 per wafer, Chinese producers have already driven costs down to roughly US$400. Players such as SICC and TankeBlue have reportedly upgraded both technology and capacity, and—backed by government subsidies and low electricity costs—are increasingly undercutting Western rivals with significantly lower pricing.
Central News Agency notes that Onsemi has publicly set its sights on becoming a global leader in SiC, with its Rožnov pod Radhoštěm facility in eastern Czech Republic serving as one of its key production hubs. However, the company now believes in-house wafer production is no longer economically viable, prompting a strategic shift toward external sourcing of lower-cost wafers while focusing on higher value-added downstream processes and chip manufacturing, the report suggests.
iROZHLAS also reports that Onsemi’s Czech unit has seen a decline in performance over the past two years, with product and service sales falling to CZK 6.724 billion in 2024, down from CZK 7.094 billion in 2023, as weaker demand weighed on results.
Against this backdrop, industry observers cited by the report widely expect Chinese suppliers to play an increasingly important role in the global SiC wafer supply chain. According to TrendForce, Wolfspeed remained the largest supplier of N-type SiC substrates in 2025, holding a 27.6% sales share, while China’s SICC and TankeBlue trailed closely with 21.5% and 20.1%, respectively.
Expansion Plans Clash With Workforce Cuts
On the other hand, e15 reports that despite the ongoing layoffs, Onsemi remains in complex negotiations with the Czech government over state incentives worth around CZK 11 billion (€450 million).
According to the Czech Semiconductor Centre, the European Commission (EC) has already approved the Czech Republic’s plan to support Onsemi’s expansion in Rožnov pod Radhoštěm. The Commission estimates the project will require a total investment of €1.64 billion (approximately CZK 40 billion).
The report adds that Onsemi first announced the new facility in June 2024, with commercial operations expected to begin by 2027.
