Onsemi Is Walking Away From a $2 Billion Chip Bet It Made in 2024

Resumen detallado

A Czech factory was supposed to anchor onsemi's electric vehicle future, backed by hundreds of millions in state aid. Now the plan is dead, and cheap imports and a pivot toward AI explain why the money is heading elsewhere.

On Friday, November 6, 2026, onsemi (NASDAQ:ON) and the Czech Ministry of Industry and Trade jointly confirmed they will not proceed with the planned silicon carbide expansion at the company's plant in Rožnov pod Radhoštěm. Silicon carbide is a material used to make power chips that handle high voltage efficiently, and electric vehicle drivetrains and chargers use a lot of it.

The stock closed at $63.20, up 0.30%, after the news came out late in the session. The bigger problem for shareholders is the decline that came before it. ON fell 23.27% over the past month during a broad chip selloff, and the close sits about 53% below the 52-week high of $134.92.

That leaves a company worth $24.65 billion with less capital tied up in electric vehicle chips and more of its future depending on AI data center power.

Onsemi dropped the plan with the ministry's agreement.

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