[198 Pages Report] The global silicon on insulator market (SOI) size is projected to grow from USD 1.0 billion in 2020 to USD 2.2 billion by 2025, at a CAGR of 15.7% from 2020 to 2025. Effective use of silicon during the manufacturing of thin SOI wafers and low operating voltage and high performance of SOI-based devices are some of the factors expected to contribute to the growth of the SOI market across the globe. The flourishing Integrated Circuit (IC) industry, expanding SOI ecosystem in Asia Pacific, and increasing use of SOI in IoT applications act as growth opportunities for the SOI market. However, the floating body and self-heating effects in SOI-based devices act as challenges for the manufacturers of SOI wafers.
The COVID-19 pandemic has impacted the sales of SOI wafer globally. However, it has created drivers, opportunities, as well as challenges for the players present in the ecosystem. For instance, companies offering SOI-based solutions such as autonomous and electric vehicles have been impacted the most due to COVID-19, as the sale was declined amid the pandemic.
Different business verticals, including retail, hospitality, automotive, manufacturing, and industrial across the world, are severely affected by the COVID-19 pandemic. The education sector is also facing challenges in terms of knowledge transfer to students. Educational institutions such as schools, colleges, universities, and research institutes in different countries across the world have been closed owing to the imposition of lockdowns to contain the spread of the infection. However, governments are promoting the e-learning process to avoid the academic loss of students. For instance, the Government of India is tying up with the providers of various platforms such as television, radio, apps, and the Internet to ensure the delivery of academic knowledge to students to avoid their academic year loss. This is spurring the demand for improved data centers, smartphones, televisions, tablets, and laptops. SOI wafers such as RF-SOI and FD-SOI are the integral components of these devices. Thus, an increase in demand for these devices is driving the growth of the SOI market during the COVID-19 pandemic.
SOI technology is potentially a competition to bulk CMOS and Metal–Oxide–Semiconductor Field-Effect Transistors (MOSFET), owing to simple dielectric isolation, low power consumption, and the high-level of soft error immunity offered by it. However, unlike bulk CMOS and MOSFET, SOI-based MOSFET offer high body resistance yielded floating body effects in SOI-based devices. These floating body affected SOI-based memory devices have high current consumption that can cause loss of information.
Moreover, in SOI-based devices, an active thin silicon body is placed on silicon oxide, which is a good thermal insulator. During the operations of these devices, the power consumed by this active thin body is not dissipated easily and causes an increase in its temperature. This increase in the temperature of the thin active body decreases the mobility and current in SOI-based devices, which may damage or reduce their overall performance. Thus, the floating body and self-heating effects in SOI-based devices act as restraints to the growth of the SOI market.
The COVID-19 pandemic profoundly impacts the offline and online retail industry as customers are afraid to shop through both platforms owing to the fear of virus spread. A decline in e-commerce and offline retail business was observed from February to May 2020. As a solution to this situation, retail companies across the world are planning to deploy automation solutions in offline stores post-COVID-19 to minimize human intervention in shopping and delivery processes. This is expected to result in a widespread acceptance of advanced automation solutions such as robots, interactive kiosks, self-checkout systems (easy checkout using smartphones), smart payment options, smart delivery options (drones), and augmented and virtual reality devices. RF-SOI, FD-SOI, PD-SOI, and imager-SOI wafers are an integral part of these smart solutions. An increase in the deployment of these solutions is expected to contribute to the demand for different types of SOI wafers, thereby acting as a growth opportunity for the SOI market. SOI wafer manufacturers require to focus on the development of advanced, miniature, and cost-effective wafers to cater to the requirements of the retail industry post-COVID-19.
The COVID-19 pandemic is not only charged with political and economic ramifications but is also leading to the loss of several lives. Consequently, the problem of the shortage of skilled personnel in SOI wafer manufacturing facilities is expected to be aggravated further. According to the World Health Organization (WHO), as on May 14, 2020, more than 4,430,242 infected cases and over 282,700 deaths due to COVID-19 were recorded all over the world. With the rapid spread of this virus in countries such as China, Taiwan, the US, the UK, Italy, Spain, and India, the death toll is expected to rise at a significant rate in the next couple of months. The key players operating in the SOI market have their manufacturing and R&D units in these countries. For instance, Soitec, Murata Manufacturing, GlobalFoundries, Sony Corporation, and GlobalWafers Co., Ltd. have their manufacturing units in China and Taiwan. The workforce in these countries is not able to reach SOI wafer manufacturing facilities owing to the imposition of lockdowns, thereby resulting in a delay in the production and delivery of SOI wafer shipments. However, almost all countries across the world are expected to continue banning people from migrating from one place to another for a few more months to curb the virus spread. This is likely to lead to the dearth of skilled workers, which, in turn, is expected to contribute to a decrease in the manufacturing of SOI wafers. This is likely to lead to supply chain disruptions in the SOI market.
Based on the product, the RF FEM segment accounted for the largest share of the SOI market in 2019. The growth of this segment can be attributed to the increased demand for RF FEM in upcoming 5G technology as well as consumer electronic devices such as smartphones, laptops, and tablets. Currently, all smartphones use RF chips comprising RF-SOI wafers. In the SOI ecosystem, wafer manufacturers and foundry players are also taking initiatives for the development of RF FEM products using SOI technology. For instance, GlobalFoundries (US) has developed advanced RF-SOI platforms that integrate low noise amplifiers, power amplifiers, RF switches, and phased-array antennas with RF FEM for advanced 4G LTE. The company is also focusing on improving the performance of its power amplifiers, low noise amplifiers, and RF switches to meet 5G FEM specifications with the help of advanced RF-SOI technology. These initiatives are expected to fuel the growth of the RF FEM segment of the market.
The automotive application segment is projected to grow at the highest CAGR between 2020 and 2025. This growth can be attributed to the increasing investments being made by automotive giants and other business leaders for the development of Advanced Driver-assistance Systems (ADAS) and driverless cars. For instance, Audi (Germany) is making efforts to integrate FD-SOI with devices or sensors used in its autonomous cars. These cars require high-speed, low-power, and compact electronic devices for their operations. This, in turn, leads to the increased demand for SOI-based wafers. Moreover, other products in autonomous cars that use FD-SOI wafers are infotainment systems, instrument clusters, Head-up Displays (HUDs), and e-cockpits.
The silicon on insulator market in APAC is projected to grow at the highest CAGR from 2020 to 2025. Increased investments by wafer manufacturers and foundry players are influencing the growth of the SOI market in this region. For instance, in March 2018, Shin-Etsu Chemical Co., Ltd (Japan) carried out around USD 996 million facility investments for its silicone business. These investments are aimed at enabling the company to expand its business in APAC. Moreover, in June 2018, TowerJazz (Israel) announced the expansion of the RF-SOI 65 nm process in its 300 mm Uozu, Japan fab.
Soitec (France), Shin-Etsu Chemical Co., Ltd (Japan), GlobalWafers Co., Ltd. (Taiwan), SUMCO (Japan), Simgui (China), GlobalFoundries (US), STMicroelectronics N.V. (Switzerland), TowerJazz (Israel), NXP Semiconductors N.V. (Netherlands), Murata Manufacturing (Japan), Skyworks Solutions (US), Qorvo (US), Sony Corporation (Japan), MagnaChip Semiconductor (South Korea), United Microelectronics Corporation (Taiwan), Taiwan Semiconductor Manufacturing Company (Taiwan), Qualcomm Technologies, Inc. (US), Silicon Valley Microelectronics (SVM), Inc. (US), EV Group (US), Ultrasil LLC (US), Siltronix Silicon Technologies (France), and WaferPro (US) are leading companies operating in the silicon on insulator market.
Soitec (France) is one of the leading players in the SOI market. It offers licenses to various companies such as SEH America for selling SOI wafers. Additionally, Soitec manufactures both thin-film and thick-film SOI wafers under the brand, UNIBOND. The company invests a major portion of its revenue in R&D activities to meet the demand for fine materials from various semiconductor manufacturers. Moreover, Soitec offers competitive products to the manufacturers of miniaturized chips to improve their performance and reduce energy consumption. These products are used to manufacture chips for consumer electronic devices such as smartphones, automotive applications, IoT applications, computer servers, and data centers. The RF-SOI and power-SOI based products offered by the company are used in consumer electronic devices and automotive. Growing demand for FD-SOI, imagers, photonics, and 300 mm RF-SOI substrates is expected to create growth opportunities for Soitec.
Soitec focuses on various organic and inorganic growth strategies such as collaborations and product launches and developments to strengthen its position in the SOI market. For instance, in January 2019, it expanded its partnership with Foundry Samsung for the supply of FD-SOI wafers to it. This development is expected to strengthen the FD-SOI supply chain of both companies. Moreover, in 2018, Soitec collaborated with Renesas Electronics Corporation for the development of Silicon on Thin Buried Oxide (SOTB) technology used for IoT-based chipset manufacturing. Soitec has entered into partnerships with various technology innovators and distributors for its continuous growth in the SOI market. The company collaborated with Shanghai Simgui Technology and IntelliEPI to enhance its technologies, expand its geographic reach, and strengthen its product portfolio.
Report Metrics |
Details |
Market size available for years |
2016–2025 |
Base year |
2019 |
Forecast period |
2020–2025 |
Units |
Value (USD Million/Thousand) and Volume (Units) |
Segments covered |
Wafer Type, Wafer Size, Technology, Product, Application, and Region |
Geographic regions covered |
North America, APAC, and Europe |
Companies covered |
Soitec (France), Shin-Etsu Chemical Co., Ltd (Japan), GlobalWafers Co., Ltd. (Taiwan), SUMCO (Japan), Simgui (China), GlobalFoundries (US), STMicroelectronics N.V. (Switzerland), TowerJazz (Israel), NXP Semiconductors N.V. (Netherlands), Murata Manufacturing (Japan), Skyworks Solutions (US), Qorvo (US), Sony Corporation (Japan), MagnaChip Semiconductor (South Korea), United Microelectronics Corporation (Taiwan), Taiwan Semiconductor Manufacturing Company (Taiwan), Qualcomm Technologies, Inc. (US), Silicon Valley Microelectronics (SVM), Inc. (US), EV Group (US), Ultrasil LLC (US), Siltronix Silicon Technologies (France), and WaferPro (US) |
This report categorizes the silicon on insulator market based on wafer type, wafer size, technology, product, application, and region.
Which is the major application of SOI wafer? How vast is the opportunity for their growth in the next five years?
Consumer electronics products are the major application of SOI, and the increase in demand for portable and miniature-sized devices is expected to open new revenue pockets for the SOI market, which will lead to a lucrative market opportunity during the forecast period.
Which wafer type is used extensively for consumer electronics applications?
RF-SOI, FD-SOI, and Imager-SOI are used extensively in consumer electronics, including smartphones and tablets.
Which wafer size is in high demand in the SOI market? Why?
The wafers having 300 mm size are highly in demand in the SOI market. 300mm wafers accommodate roughly twice as many dice per wafer as 200mm wafers. Moreover, the upcoming technologies and trends, such as the advent of 5G, miniaturization of electronic devices, and the development of advanced vehicles, are expected to increase the demand for 300 mm SOI wafers.
Which region is expected to witness significant demand for the SOI market in the coming years?
APAC is the highest growing region for this market. Major OSAT and foundry players present across the world have their headquarters in the APAC region. The increasing demand for portable electronic products for different applications, including consumer electronics, industrial, automotive, military, defense, and aerospace, is expected to increase the demand for SOI wafers in this region.
Who are the major players operating in the SOI market?
Soitec (France), Shin-Etsu Chemical Co., Ltd (Japan), GlobalWafers Co., Ltd. (Taiwan), SUMCO (Japan), and Simgui (China) are the major players operating in the global SOI market. .
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The study on the silicon-on-insulator (SOI) market involved four major activities for estimating the current size of the market. Exhaustive secondary research was carried out to collect information about the market, its peer markets, and its parent market. The next step was validating findings, assumptions, and sizing with industry experts across the value chain through primary research. Both top-down and bottom-up approaches were used to estimate the overall size of the SOI market. It was followed by the market breakdown and data triangulation procedures to estimate the size of different segments and subsegments of the market.
In the secondary research process, various secondary sources were referred to for identifying and collecting information pertinent to this study on the SOI market. Secondary sources included annual reports; press releases; investor presentations; white papers; journals and certified publications; articles by recognized authors; directories; and databases. Secondary research was conducted to obtain important information about the supply chain of the industry, its value chain, the total pool of key players, market segmentation according to the industry trends (to the bottommost level), geographic markets, and key developments from both, market- and technology oriented perspectives.
Extensive primary research was conducted after gaining knowledge about the current scenario of the SOI market through secondary research. Several primary interviews were conducted with the market experts from both demand (commercial application providers) and supply (wafer manufacturers and providers) sides across three major regions: North America, Europe, and Asia Pacific. Approximately 20% and 80% primary interviews were conducted with parties from demand and supply sides, respectively. The primary data was collected through questionnaires, emails, and telephonic interviews.
In the complete engineering process, both top-down and bottom-up approaches, along with several data triangulation methods, were used to estimate and validate the size of the SOI market and other dependent submarkets. The key players in the market were determined through primary and secondary research. This entire research methodology involved the study of the annual and financial reports of the top market players and extensive interviews with industry experts such as Chief Executive Officers (CEOs), Vice Presidents (VPs), directors, and marketing executives to obtain both, qualitative and quantitative key insights of the SOI market.
All percentage shares, splits, and breakdowns were determined using secondary sources and verified through primary sources. All possible parameters that affect the markets covered in this research study were accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data. This data was consolidated and supplemented with detailed inputs and analysis from MarketsandMarkets and presented in the report.
With the given market data, MarketsandMarkets offers customizations according to the specific requirements of companies. The following customization options are available for the report:
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Hello, I just wonder if there is any benefit on Automotive OEM manufacturers by using specific IC which is made on SOI wafer. I fully understand some benefit on IC maker side and Tier1 or 2 side and same for OEM. But need to gain more information.
We had purchased the report a few months back. We have some queries on the market and would like to speak to the analyst. Kindly connect with me as soon as possible.
Interested in understanding if you cover the market share of RF SOI foundries (e.g., what percent of an RF SOI foundry is used by company X vs Y vs Z)
Hi, I am wondering if you make discounts for start-ups as we are interested in your report.
Need help for our SOI technology development study. Requirement is for market size by SOI type, application and wafer size.
I see a huge difference between your 2018 report and the one of April 2017 on the same subject (SOI); in particular the alternative technologies to smart cut like Eltran. Could you explain ?
If you would like to provide the report with great discount for the education purpose that lets future engineers recognize SOI's key role in microelectronic industry, please let me know.
Please let me know more about this report. My focus is to understand the RFSOI TAM and who are the chip makers (RFMD/Skyworks/etc.) and their potential growth beyond 2019.
Hi, we need sections 1, 2, 4, and 7 for our Technology Management Program class on microchips.
Need following information 1. 200mm prime wafer historical pricing & future pricing trends per wafer type : Epi wafer (p/p-, p/p+ type), polished wafer (p type), annealed wafer, monitor wafer (N type), SOI wafer 2. World wide top 10 silicon supplier / manufacturer status / new product launches.
I would like to know the market size and growth of SOI semiconductor as well as the major product applications and TAM.