Lowering Soitec Fair Value Estimate After Weak 2025 Outlook
Soitec manufactures silicon-on-insulator, or SOI, and other engineered wafers for the semiconductor industry. It buys plain silicon wafers and reengineers them, adding layers of materials to improve efficiency and reduce power consumption. Foundries like Samsung or GlobalFoundries use SOI as it allows them to produce more-efficient chips without the need for investing in smaller node sizes, hence saving money and reducing capital intensity. SOI is especially suitable for mobile, radiofrequency, and automotive applications.