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Global Silicon on Insulator (SOI) Market Poised for 12.8% CAGR Growth, Projected to Hit US$ 6.5 Billion by 2034 - TMR Report

05-22-2025 03:42 PM CET | Advertising, Media Consulting, Marketing Research

Press release from: Transparency Market Research

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Silicon on Insulator (SOI) Market

Silicon on Insulator (SOI) Market

The global Silicon on Insulator (SOI) market, valued at USD 1.7 billion in 2023, is projected to expand to USD 6.5 billion by the end of 2034, registering a robust compound annual growth rate (CAGR) of 12.8% over the forecast period (2024-2034). SOI technology built on a layered silicon-insulator-silicon substrate offers key advantages, including reduced power consumption, enhanced speed, and superior thermal performance compared to conventional bulk silicon wafers. As semiconductor manufacturers seek ever-smaller device footprints and greater energy efficiency, SOI's role in advancing next-generation integrated circuits and photonic devices has never been more critical.

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Market Drivers & Trends

Adoption of Silicon Photonics: SOI serves as the foundation for silicon photonics, enabling the manufacturing of photonic integrated circuits (PICs) used in optical datacom, AI accelerators, AR/VR, sensing, and biomedical applications. The push for faster, power-efficient communication is fueling heavy R&D investments and pilot production of PIC-enabled chips.
Quantum Computing Investments: Quantum computing architectures leveraging silicon spin qubits require ultra-clean, defect-free SOI substrates. As governments and private players scale up quantum roadmaps, demand for high-quality SOI wafers is surging.
Advanced CMOS Processes: Fully depleted SOI (FD-SOI) processes help reduce short-channel effects and leakage currents in advanced nodes (e.g., 18 nm FD-SOI), accelerating adoption in microcontroller and RF device manufacturing.

Latest Market Trends

Programmable Silicon Photonic Processors: In June 2024, the Center for Programmable Photonic Integrated Circuits and Systems at IIT Madras partnered with Malaysia's SilTerra to co-develop programmable photonic processor chips tailored for quantum communications and computing.
Embedded Phase-Change Memory (ePCM): Major foundries are integrating ePCM within 18 nm FD-SOI microcontrollers, combining non-volatile memory with logic on a single SOI wafer-slated to enter production by late 2025.
Mergers & Capacity Expansions: SOITEC announced a 300 mm wafer fab extension in Singapore to double capacity, reflecting robust demand from both telecom and emerging quantum sectors.

Key Players and Industry Leaders
The SOI landscape comprises a mix of pure-play wafer suppliers, IDMs, and fabless innovators:

GlobalFoundries Inc.
GlobalWafers
Magnachip
Murata Manufacturing Co., Ltd.
NXP Semiconductors
Qorvo, Inc.
Shanghai Simgui Technology Co., Ltd.
Shin-Etsu Chemical Co., Ltd.
Silicon Valley Microelectronics, Inc.
Skyworks Solutions, Inc.
SOITEC
STMicroelectronics N.V.
SUMCO CORPORATION
Tower Semiconductor
WaferPro

Recent Developments

US CHIPS Funding for SOI: In April 2024, the US Department of Commerce agreed to provide up to US$ 6.4 billion under the CHIPS Act for Samsung's Texas fabs, including HBM and 2.5D packaging-technologies reliant on SOI interposers for high-bandwidth memory stacks.
Quantum Processor Funding: C12 (France) secured €18 million in June 2024 to accelerate SOI-based quantum processor design.
New Process Rollouts: STMicroelectronics' new ePCM-embedded FD-SOI process is on track for sampling to strategic customers in H2 2024, with volume production slated for H2 2025.

Market Opportunities

Automotive & EV Electronics: As electric vehicles integrate more sensors and power modules, SOI's low-leakage and high-reliability attributes open avenues in motor drives, battery management, and LiDAR systems.
5G & Beyond: RF-SOI capacity is critical for next-generation antenna tuners, switches, and low-noise amplifiers in mmWave front-ends.
IoT & Wearables: Ultra-thin, low-power SOI chips can drive a new wave of edge AI and biomedical wearables, combining MEMS sensors with on-chip processing.

Future Outlook
Looking ahead to 2034, SOI adoption will broaden beyond traditional telecom and datacom into consumer electronics, healthcare, and automotive segments. The convergence of photonics and electronics on a single SOI platform could yield photonic-electronic system-on-chips (PSoCs), unlocking terabit-scale interconnects at chip-to-chip and chip-to-cloud interfaces. Quantum-ready SOI substrates will underpin the nascent quantum Internet, enabling secure, long-distance entanglement networks by the early 2030s.

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About Transparency Market Research

Transparency Market Research, a global market research company registered at Wilmington, Delaware, United States, provides custom research and consulting services. Our exclusive blend of quantitative forecasting and trends analysis provides forward-looking insights for thousands of decision makers. Our experienced team of Analysts, Researchers, and Consultants use proprietary data sources and various tools & techniques to gather and analyses information.

Our data repository is continuously updated and revised by a team of research experts, so that it always reflects the latest trends and information. With a broad research and analysis capability, Transparency Market Research employs rigorous primary and secondary research techniques in developing distinctive data sets and research material for business reports.

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