Onsemi Czech Plant is reportedly cutting up to 300 jobs at its Rožnov pod Radhošt facility, a move driven by relentless pressure from low-cost Chinese silicon carbide competitors. The news comes from Czech media outlet e15 and marks the second major layoff round at the site. Just a year earlier, in 2025, the US-based SiC maker removed around 170 workers, chopping off its Czech workforce by roughly 7.5%.
China’s Price Shock
These layoffs at Onsemi Czech Plant aren’t about efficiency tweaks. They’re a direct response to China’s aggressive pricing in the silicon carbide market.
Two years ago, Wolfspeed’s mainstream 6-inch SiC wafers sold for USD 1,500 each. Today, Chinese suppliers offer the same wafers for as little as USD 500, sometimes even less. By late 2024, prices could drop to $450 or $400, pushing most producers into financial distress.
Chinese manufacturers won this cost battle through government subsidies and cheaper electricity. Western producers face roughly $1,200 per wafer in production costs, while Chinese rivals have squeezed that down to around $400.
The crystal growth process demands temperatures near 2,300 degrees for days, creating massive energy demands that hit European manufacturers hardest under their high electricity prices.
Domestic Wafer Production Economically Unworkable
Onsemi’s leadership now sees continued domestic wafer production as economically unworkable. The company plans to shrink capacity, buy lower-cost wafer materials from the market, and focus on higher-value backend processes and chip manufacturing.
Onsemi hasn’t confirmed it will buy Chinese products, but industry watchers expect Chinese suppliers to play a bigger role in the global SiC wafer supply chain.
This pivot comes despite Onsemi’s $2 billion commitment to expand its Czech operations into Europe’s first vertically integrated 8-inch SiC wafer facility covering the entire value chain.
The company is working with the Czech government and European Commission on public aid applications worth about €450 million, though these layoffs raise questions about how restructuring will affect the investment timeline.
The Pressure Spreads Beyond Onsemi
SiC substrate commoditization has crushed the economics for vertically integrated players across the industry.
Wolfspeed’s CEO Gregg Lowe stepped down at the end of 2024 after financial performance deteriorated amid intensifying competition from low-cost Chinese chips.
Japan’s ROHM has posted consecutive quarterly net losses since mid-2024.
Chinese Suppliers Are Driving This Expansion
Tianjiao He Da, Tianyue Advanced, Tongguang Semiconductor, Shuo Ke Crystal, and Sanan Semiconductor are leading the charge.
Chinese suppliers were expected to account for over half of global SiC substrate capacity in 2024.
Tianyue Advanced alone jumped into the top three globally for conductive silicon carbide substrate market share in 2023.
Global Silicon Carbide Market
The global silicon carbide devices market is projected to grow from $4.57 billion in 2026 to $26.13 billion by 2034, a compound annual growth rate of 24.3%.
But intense competition has driven prices down, forcing many manufacturers to sell at losses.
Industry experts now predict consolidation in the SiC substrate sector by mid-2025, earlier than the previously expected 2026 timeline.
Onsemi‘s Q1 2026 Revenue
Onsemi’s Q1 2026 revenue hit $1.51 billion, up 5% year over year and above guidance, with non-GAAP diluted EPS of $0.64 also beating expectations.
Yet the company’s 2024 revenue fell 14.2% with net income down 28%, and its stock price has dropped significantly over the past six months.
The Czech plant remains critical for electric vehicle applications, producing smart power semiconductors that improve energy efficiency in EVs, renewable energy systems, and AI data centers. When finished, the expanded facility will add more than $270 million annually to Czech GDP.
This restructuring reflects a broader transformation in third-generation semiconductors. Chinese manufacturers are leveraging scale and policy support to dominate the substrate market, fundamentally reshaping supply chain dynamics for Western power semiconductor companies.
