Soitec CEO Pierre Barnabé explains the importance of implementing a diversification strategy to mitigate risks and navigate difficult times.
eetimes.eu, Feb. 12, 2025 –
The recovery of the semiconductor market in the second half of 2024, predicted by industry players, failed to materialize, mainly due to challenges in the automotive sector and headwinds in the global economy. Soitec's revenue fell again in the first nine months of fiscal year 2025, and CEO Pierre Barnabé expects full-year revenue for fiscal year 2025 to decline by "high single digit" and limited growth in fiscal year 2026.
For the third quarter of fiscal year 2025, Soitec reported consolidated revenue of €226 million, down 6% compared to the same period last year. Cumulatively, nine-month fiscal year 2025 revenue stood at €564 million, a 12% decline on a reported basis compared to the previous year. In response to deteriorating conditions in the automotive and consumer markets, Soitec revised its fiscal year 2025 guidance, now anticipating a high single-digit year-on-year revenue decrease at constant exchange rates and perimeter, with an expected EBITDA margin between 32% and 34%.
Market reaction was immediate. On the Paris stock exchange, the downward revision of Soitec's annual outlook and the lack of visibility provided by the company's management caused the share price to fall by 29.7% the following day.
EE Times Europe's request for clarification has so far gone unanswered. However, a discussion with Barnabé just before the publication of the quarterly results showed a more encouraging outlook. At that time, he said Soitec expected to increase sales to US$2 billion in the medium term, up from US$1.1 billion in fiscal year 2024. Among its main growth drivers will be diversification beyond mobile, notably with AI, and geographical diversification into regions offering strong growth potential, such as China.
"We're in the midst of a very rapid adoption phenomenon, and the potential for AI to pervade a huge number of sectors remains enormous," Barnabé told EE Times Europe. "We're just at the beginning, and we could be in for several years of very strong growth."
During the interview, Barnabé explained the importance of implementing a diversification strategy to mitigate risks and navigate difficult times...