On February 5, French semiconductor materials supplier Soitec revised down its sales forecast for 2025, attributing the adjustment to delayed deliveries requested by a few customers due to challenging conditions in the automotive and consumer markets.
The company now anticipates a high-single-digit percentage decrease in 2025 revenue year-on-year at constant exchange rates and on a comparable business basis, having initially projected stable full-year sales. Soitec also foresees an EBITDA margin between 32% and 34% for the current year, lower than the previous level of around 35%.
Chip stocks have faced pressure as AI-related demand failed to offset weakened interest in automotive, PC, and memory chips. Concerns over inflation and reduced demand intensified following U.S. President Donald Trump's announcements regarding Canada, China, and Mexico, although temporary exemptions were granted for a month, excluding China.
Soitec's CEO, Pierre Barnabé, acknowledged ongoing challenges, stating that customers are adjusting RF-SOI inventories based on market conditions, which will result in fluctuations in the coming quarters. The automotive and industrial divisions are particularly affected by the subdued auto market.
With market uncertainties persisting, specific guidance for 2026 cannot yet be provided. Soitec, whose clients include TSMC, UMC, Sony, Global Foundries, and STMicroelectronics, foresees limited growth in the coming year due to current market conditions.
In the last quarter, the company's revenue declined by 10% at constant exchange rates and perimeter to 226 million euros ($236 million), down from 240 million euros a year earlier.