Soitec Tag Archive

  • Soitec Announced Consolidated Revenue for the Third Quarter of FY’24

    Soitec Announced Consolidated Revenue for the Third Quarter of FY’24

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    Soitec announced consolidated revenue of 240 million Euros for the third quarter of FY’24 (ended December 31st, 2023), down 13% on a reported basis compared with 274 million Euros achieved in the third quarter of FY’23. This reflects a 12% decline at constant exchange rates and perimeter and a negative currency impact of 1%.

    Pierre Barnabé, Soitec’s CEO, commented: “After the very strong sequential rebound achieved in the second quarter, we maintained our third-quarter revenue at a similar level, in line with our expectations. As we indicated during our last communication, the correction of RF-SOI inventories by our customers continues to weigh on revenue, offsetting the continued strong performance of FD-SOI, POI and Power-SOI, strong growth in Automotive & Industrial, and a solid level of revenue in Smart Devices.

    We anticipate to continue to face challenging market dynamics on RF-SOI for another couple of quarters. While confirming that we expect a solid Q4’24, we are adjusting our revenue guidance for the full-year, with an organic decline of around 10% year-on-year and an EBITDA margin forecast of around 34%. Expansion into new products remains a key pillar of our strategy, and we are very satisfied with the successes we have achieved.

    In Mobile Communications, FD-SOI penetration continues to progress, with the latest flagship smartphones embedding increasingly more content. POI activity accelerates, with two new customers in production in the quarter and more than ten in the qualification phase.

    On SmartSiCTM, our roadmap is on track on all aspects: technology, industrial, supply and commercial. We have secured a second customer, with production scheduled to start in the second part of calendar year 2024.

    The ongoing deployment of our strong megatrends across our three strategic end markets and our expanding product portfolio support our sustainable growth story. We now expect our $2.1bn revenue outlook to be postponed by around a year.

    FY’24 revenue guidance is revised: revenue is expected to be down around 10% year-on-year at constant exchange rates and perimeter as opposed to a mid-single digit decrease previously expected, and EBITDA margin at around 34% as opposed to around 35%.

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  • Soitec Introduced New Water Reuse Process

    Soitec Introduced New Water Reuse Process

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    Soitec announced the launch of a new industrial installation allowing wafer rinse water to be partially reused in the production of ultra-pure water for cleanrooms at its French manufacturing facilities.

    Thanks to this innovation, the first of its kind in Europe at this scale, Soitec intends to increase significantly the proportion water that can be reused in its industrial processes. The wastewater reuse rate at its historic site in Bernin (Isère) is thereby expected to rise from 19% in 2023 to over 35% in 2024.

    This solution, developed by Soitec in Bernin over three years, represents an important milestone in Soitec’s continuous improvement of resource management, one of the key pillars of its sustainable development strategy.

    Cyril Menon, Soitec Chief Operations Officer: “This manufacturing process innovation is an illustration of Soitec’s commitment over several years to limit the intake of fresh water, a critical resource for semiconductor materials production. It is a significant milestone that we have reached. The introduction of this new process demonstrates that we can produce more with less, contributing to a more sustainable future.”

    Soitec puts efficient management of natural resources at the heart of its commitment to sustainable development. While water is essential for the semiconductor industry, Soitec is well aware that it is a rare and precious resource that must be used responsibly and equitably by all.

    From 2015 onwards, Soitec committed itself to a series of action plans to mitigate its impact on water resources. Soitec reduced its overall water consumption per unit produced by 30% between 2021 and 2023, and is targeting a further 30% reduction by 2030.

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  • Soitec Reports Financial Results

    Soitec Reports Financial Results

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    Soitec announced its revenue for the second quarter of fiscal year 2024 and its results for the first half of fiscal year 2024 (ended on September 30th, 2023). The financial statements were approved by the Board of Directors during its meeting today.

    • Q2’24 revenue reached €245m, down 7% at constant exchange rates and perimeter compared to Q2’23
    • H1’24 revenue at €401m, down 15% both at constant exchange rates and perimeter and on a reported basis compared with H1’23 – in line with guidance
    • H1’24 EBITDA margin stood at the robust level of 33% of revenue while the Company maintained significant investment in R&D
    • Anticipated return to a slight year-on-year organic growth in H2’24, leading to a moderate downward revision of FY24 outlook: mid-single digit decline in FY’24 revenue expected at constant exchange rate and EBITDA1 margin2 anticipated around 35%

    Pierre Barnabé, Soitec’s CEO, commented: “With a sequential growth of over 50% compared to the first quarter, our second-quarter revenue rebounded significantly, as we had anticipated. This was particularly the case in Mobile Communications as the inventory correction across the smartphone value chain eased. We continue to leverage strong demand in Automotive to deploy our SmartSiC™roadmap and we continue to progress actively with several customers.

    Overall, our first half revenue is in line with our expectations. We have maintained strong profitability and a solid financial position, while continuing to invest in R&D and industrial capacity, as well as building inventories to prepare for H2’24.

    Looking ahead, we maintain our growth perspectives for the second part of the fiscal year. We note however that the absorption of RF-SOI inventories at our customers level will last longer than anticipated. At the same time, we continue to expect sustained demand in Automotive & Industrial as well as in Smart Devices. Consequently, we now anticipate a full-fiscal-year revenue decline of around mid-single digit percentage, and an EBITDA margin of around 35%. After this transition year, we will resume our growth trajectory” added Pierre Barnabé.

    FY’24 outlook

    Soitec confirms growth recovery in the second half of FY’24. Against the backdrop of a weaker-than-expected smartphone market, the extent of the inventory correction at our customers level is greater than anticipated. We confirm strong traction for our Automotive & Industrial and Smart Devices divisions. We now anticipate our FY’24 revenue to slightly decline, by around a mid-single digit percentage, compared to FY’23, at constant exchange rates and perimeter.

    As a result, FY’24 EBITDA margin is now expected to be around 35% of revenue. The Group will continue to implement cost control measures, while further investing significantly in R&D.

    FY’24 Capital expenditure is expected to be around 290 million Euros in order to support growth beyond FY’24. Soitec’s growth outlook remain very strong: while the SOI content within end devices continues to increase, the ongoing penetration of the Group’s products across its three end markets and the successful deployment of its expansion into Compound Semiconductors with POI and SmartSiC™ becoming new significant growth drivers in the future.

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  • Soitec Opens New Plant

    Soitec Opens New Plant

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    Soitec opened its new plant in Bernin, near Grenoble, in the presence of Thierry Breton, European Commissioner for the Internal Market and Roland Lescure, French Minister Delegate for Industry.

    Soitec has developed its SmartSiC™ technology as a response to vehicle electrification challenges.

    The technology, based on silicon carbide (SiC), sets a new standard with improved efficiency for energy conversion systems. Thanks to its reduced energy losses, better thermal management and improved power density, the material increases the range and performance of electric vehicles.

    Through the application of SmartCut™ technology, each SiC substrate can be used 10 times.

    As a result, SmartSiC™ enables electric vehicles to achieve ranges above 500 km, compared with an average 350 km for vehicles using silicon IGBT alternatives – while also reducing CO2 emissions during wafer manufacturing by 70% compared to monocrystalline SiC substrates.

    Development of the technology began in 2020 in partnership with CEA-Leti and has received financial support from the French state, the region, local authorities and the European Union.

    A new production facility in step with Soitec’s ambition

    The new plant will have a 2,500 m2 footprint and a final production capacity of 500,000 SmartSiC™ wafers per year.

    It will contribute to Soitec’s strategy of sustainable growth towards a threefold expansion of addressable markets by 2030, reinforcing the company’s leadership position in the strategic semiconductor materials market.

    The new plant will lead to the creation of 400 direct jobs, while also reinforcing the attractiveness and dynamism of the “French Silicon Valley” ecosystem.

    Pierre Barnabé, Chief Executive Officer of Soitec, stated: “More than ever we are ready to establish our SmartSiC™ technology as a new standard in semiconductor materials for coming generations of electric cars. This plant will enable us to meet growing demand for silicon carbide and achieve a 30% market share by 2030, while helping to make electric mobility more efficient and affordable. Completed in record time, it is the embodiment of our industrial performance and our future-facing strategy, based on the expansion of our product and technology portfolio.

    This is also an important day for our region, which is once again showing its dynamic and exemplary approach to industrial innovation, with technologies designed, developed, and manufactured within our ecosystem. We will create jobs and continue to showcase French and European knowhow in global semiconductor markets.”

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