Market for SOI to reach $1.1B by 2012, VLSI Research reports

Although 2008 sales of SOI are expected to be slightly down from 2007, the following years will see double-digit growths stimulated by the 45-nm transition by existing SOI users along with potential new customers.

By Ann Steffora Mutschler, Senior Editor -- Electronic News, 7/30/2008

Following the general trend of the semiconductor manufacturing ecosystem, sales of SOI (silicon on insulator) technology slowed in 2007 to a 6% year-over-year revenue increase at $654 million. The single-digit growth pales in comparison to the 46% and greater growth in each of the three previous years, according to to Santa Clara, Calif-based VLSI Research Inc.

The market research company pointed out that Soitec continues to be the leading force in SOI with a 67% worldwide market share, followed by number two player Shin Etsu Handotai, which licenses Soitec’s Smart Cut technology for the production of its thin SOI wafers.

In 2007, SOI wafers comprised approximately 1.4% of total silicon demand, in terms of area, which is nearly three times what it was in 2002, and since SOI technology is primarily used in high-end consumer devices, demand can be unpredictable, especially when consumer disposable income diminishes. However, VLSI noted that the market as a whole is very healthy and has been growing at a compounded annual growth rate (CAGR) of 36% for the past three years.

Growth of SOI technology is driven by major semiconductor manufacturing node transitions, and since it acts as a technological enabler, SOI becomes the solution because of its ability to create less complicated isolation structures on a circuit, resulting in higher-end devices can be built with each new node transition using SOI, VLSI said.

While 2008 sales of SOI are expected to be slightly down from 2007, the following years will see double-digit growths stimulated by the 45-nm transition by existing SOI users as well as potential new customers. 

The SOI market will continue to grow at a healthy rate in the coming years, with the next five years predicted to grow at a CAGR of 11% and reach $1.1B by 2012, VLSI concluded.