Soitec Targets to Triple Revenues by 2026

Article By : Anne-Françoise Pelé

Soitec has unveiled its strategic vision and targets to triple its revenues over the next five years.

Soitec has unveiled its strategic vision and targets to triple its revenues over the next five years.

The French silicon-on-insulator wafers maker has reported revenues of €180.4 million, up 69% at constant exchange rates, in the first quarter of fiscal year 2022 compared to the first quarter of fiscal year 2021. Revenues are up 1% on a sequential basis at constant exchange rates.

“This first quarter marks a solid start of our fiscal year 2022,“ commented Jean-Paul Boudre, CEO of Soitec. “We recorded a sequential growth for the fourth consecutive quarter, a strong performance that was boosted by our 300mm radiofrequency wafers, a confirmation of the automotive sector recovery and the ongoing ramp-up of our POI [Piezoelectric-on-Insulator] wafers dedicated to RF filters.” During the first quarter, Soitec also “confirmed the rebound” initiated in the previous fiscal year of its FD-SOI [Fully Depleted Silicon-On-Insulator] products.

For fiscal year 2022, Soitec said it expects to post revenue growth of approximately 40% at constant exchange rates, to about €800 million.

Revenue x3 by 2026

Considering today’s semiconductor market dynamics and emerging applications, Soitec has laid out an ambitious five-year roadmap. “We are aiming to triple our revenue between fiscal year 2021 and fiscal year 2026 through growth in our three end markets – mobile communications, automotive and industry, as well as smart devices,” said Boudre.

Soitec anticipates that the growth of its addressable markets will continue to accelerate, from around 3 million substrates to over 7 million substrates by 2026.

To realize its ambitions, Soitec is working on a €1.1 billion five-year capital expenditure program over the next five years.

EU chip alliance

“Semiconductors are at the heart of the digital and green transformation of our industry and economy,” wrote Commissioner for Internal Market Thierry Breton in a LinkedIn blog post today (July 27). “Yet Europe has dropped from a 40% market share in the 1990s to 10% today. We urgently need to reposition Europe in this critical technology. This is essential to avoid exposing our industrial ecosystems, as we are seeing with the current shortage of semiconductors.”

The European Commission launched on July 19 two new Industrial Alliances: the Alliance for Processors and Semiconductor technologies and the European Alliance for Industrial Data, Edge and Cloud.

The alliances, which aim to gather businesses, member state representatives, academia, and R&D institutes, seeks to develop the next generation of semiconductor and industrial cloud/edge computing technologies.

“The alliance on semiconductors will rebalance global semiconductor supply chains by ensuring that we have the capacity to design and produce, in Europe, the most advanced chips towards 2nm and below,” commented Breton. The objective is to increase Europe’s share of the global production of semiconductors to 20% by 2030.

Soitec said it has joined the Alliance for Processors and Semiconductor technologies. “For the first time in forty years in the semiconductor industry, we do not have a single transforming market, but multiple markets ahead of us that we will have to support,” commented Boudre in a video interview for French TV channel BFM Business. “Semiconductor is strategic because it will transform our lives in the next 10, 20 years.”

He continued, “It is a pivotal moment for Europe. And we, industrial players, must work together to define this ambition.”

In the Grenoble semiconductor ecosystem, CEA-Leti has also joined the Alliance, but STMicroelectronics’ position remains unclear. In a video interview for BFM Business in early May, ST’s CEO Jean-Marc Chéry called the initiative a positive development that could “bring competition in Europe on advanced technologies,” but, “If it’s about advanced technologies, there’s no reason for us to be part of it. That’s marginal to our activities.”

On a visit to ST’s facilities in Grenoble last week (July 21), Breton, however, claimed the chipmaker’s membership will be formalized after the release of its quarterly results on July 29, according to French news portal Usine Nouvelle. This remains to be proven.

This article was originally published on EE Times Europe.

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