Soitec CEO remains positive on semiconductor growth

THE semiconductor industry may be experiencing a slump now, but the expected high demand for components in emerging areas, such as electric vehicles, suggests that the sector will return to growth in no time, said French manufacturer Soitec’s chief executive officer Pierre Barnabe. 

“I am optimistic because the trend is quite easy to understand,” he said in an interview with The Business Times (BT). “Our phones have more and more capabilities, and (need) more and more components. Second… the new generation of electric cars that are just on the market today, they’re embarking on hundreds if not thousands of components.”

Barnabe joined Soitec in May this year and began his stint as CEO in July. Prior to that, he was senior executive vice-president, group security officer and global head of Big Data and cybersecurity at French information technology company Atos.

During the interview, he noted that the global semiconductor industry is projected to become a trillion-dollar one by 2030, a trajectory that he says is “a given”. 

Nevertheless, downcycles in the market are to be expected, and during such slumps, it is expected that some companies may suffer more than others, noted Barnabe. “But the ones that are well-settled, like Soitec, in smartphones, cars and smart devices (are likely to fare better as) these sub-sectors are more dynamic, and that gives us optimism in the long run.”

Soitec is similarly positive on Singapore. On Friday (Dec 9), it broke ground on a 400 million euro (S$571.2 million) extension to its Wafer Fab Park in Pasir Ris. Half of the funds will go towards construction, while the rest will be spent on tools and equipment.

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign UpVIEW ALL

Set to complete in 2024, the extension will be dedicated to the production of 300 millimetre silicon-on-insulator wafers, which are used to produce chips for smartphones, electric and autonomous vehicles, and other smart devices. This will double the company’s annual production capacity in Singapore to around two million wafers, and complement its plans to ramp up global annual production capacity to around 4.5 million wafers by FY2026.

The extension will add 45,000 square metres of clean room and office space to Soitec’s factory in Singapore. With a bigger facility, Soitec plans to double its Singapore workforce to more than 600 by 2026, it said in a media statement.

Soitec’s decision to expand its operations here signals the company’s strong confidence in Singapore and “long-term commitment of building its presence here and also the region”, said Minister of State for Trade and Industry Low Yen Ling during the groundbreaking ceremony.

“The semiconductor industry continues to be an important pillar of Singapore’s economy, contributing 7 per cent of our GDP (gross domestic product). By partnering with global companies like Soitec, we have built our leadership across the semiconductor value chain,” she added.

Indeed, Singapore has done a lot recently to strengthen its position as a regional player in the semiconductor sector, noted French Ambassador to Singapore Minh-di Tang at the ceremony. “Many European, American and Asian companies have announced substantial investments to expand their operations here.”

Soitec is confident that Singapore will continue to play a very important role in the sector. “I believe that Singapore is ready to take a large part and to accompany the growth of the semiconductor industry in the world,” Barnabe told BT.