Silicon-on-Insulator (SOI) Market - By Wafer Type, By Wafer Size, By Technology, By Application, By End-use Industry & Forecast, 2024 - 2032

Silicon-on-Insulator Market Size

The global silicon-on-insulator market was valued at USD 1.3 billion in 2023 and is estimated to grow at a CAGR of over 15.3% from 2024 to 2032. The silicon-on-insulator (SOI) industry is driven by the increasing demand for low-power, high-performance electronics and the growing adoption of SOI technology in the automotive sector.
 

Consumer electronics like smartphones, wearables, and tablets need faster speeds and better power efficiency. This has led to the rise of SOI technology, particularly Fully Depleted SOI (FD-SOI), which reduces power use while maintaining high performance. In the automotive industry, the shift towards electric vehicles (EVs) and self-driving technologies has increased the need for reliable, heat-resistant, and energy-efficient semiconductors. SOI is widely used in Advanced Driver Assistance Systems (ADAS) and EV power management, further driving market growth. A GlobalFoundries study shows that SOI-based chips can use up to 30% less power than conventional bulk silicon chips. This makes them ideal for power-sensitive applications like ADAS and infotainment systems in vehicles.
 

Silicon-on-Insulator Market Trends

5G technology is transforming telecommunications, with silicon-on-insulator (SOI) technology playing a key role. The demand for faster data, lower latency, and better network reliability has increased the use of SOI-based components in telecom applications. SOI enables efficient high-frequency radio frequency (RF) devices, ideal for 5G. Its low power consumption helps telecom operators cut costs while delivering high-speed connectivity. As 5G grows, new uses like smart cities, self-driving cars, and IoT need strong communication infrastructure. SOI's versatility suits various 5G applications, allowing seamless connectivity across platforms and devices. For instance, according to GSM Association report in July 2023, South Korea leads with 48% of mobile connections on 5G, totaling 31.3 million, and 88% of smartphones being 5G-capable. China follows closely with 41% of mobile connections on 5G, amounting to over 700 million. Japan shows rapid growth, with a 76% increase in 5G connections from Q2 2022 to Q2 2023, reaching 60.8 million connections and a 28.5% adoption rate.
 

Silicon-on-Insulator Market Analysis

The market faces significant restraints that may impede its growth. High production costs remain a primary challenge, as SOI wafer manufacturing requires advanced technology and specialized equipment, making them more expensive than traditional silicon wafers. Additionally, the complexity of integrating SOI technology into existing manufacturing processes creates a barrier for some companies, particularly smaller manufacturers with limited resources to adapt to new technologies. These factors contribute to market uncertainty and may slow the broader adoption of SOI solutions across industries.
 

Based on technology the silicon-on-insulator market is segmented into smart cut, bonding SOI, and layer transfer SOI. The smart cut segment is projected to grow at a CAGR of over 16% and is expected to reach over USD 3 billion by 2032.

• Smart cut technology is set to grow rapidly, thanks to its ability to produce high-quality, ultra-thin Silicon-on-Insulator (SOI) wafers. This process reuses donor wafers, cutting costs and boosting efficiency. As industries demand more efficient, high-performance semiconductors, smart cut's scalability and consistent quality make it ideal for Fully Depleted SOI (FD-SOI) applications in low-power devices.
   
• The rise of 5G, Internet of Things (IoT), and artificial intelligence (AI) further fuels demand for smart cut SOI wafers. These technologies need semiconductors that work well at high frequencies while using little power, a need that smart cut technology meets effectively.
   

Based in the wafer size the silicon-on-insulator (SOI) market is divided into 200mm and 300mm. The 300mm segment is dominating the market with a market share of over 64% in 2023.
 

• 300mm wafers dominate the SOI market due to their ability to meet high-volume production needs in advanced semiconductor applications. These larger wafers allow manufacturers to produce more chips efficiently, meeting demands in consumer electronics, telecommunications, and automotive industries.
   
• The shift to 300mm wafers is driven by their improved performance and cost-effectiveness. They offer better yield rates and lower production costs compared to smaller wafers. As technologies like 5G, AI, and IoT require more sophisticated chips, the reliance on 300mm wafers is set to grow, cementing their market leadership.
   

North America held the share of over 28% in the global silicon-on-insulator market.  The U.S. market is growing rapidly. This growth stems from rising demand for advanced semiconductors in consumer electronics, telecommunications, and automotive sectors. Heavy investment in R&D and quick adoption of 5G and IoT have made the U.S. a leader in SOI. Major U.S. semiconductor makers use SOI to boost performance and energy efficiency, driving innovation and competitiveness globally. The shift to electric and automated vehicles also increases SOI demand, especially for efficient power management systems.
 

North America's market is booming. Tech innovation, semiconductor investments, and leading companies drive this growth. SOI advances in RF components and high-performance computing. Energy efficiency goals boost SOI use in renewable energy and electric vehicles. As North America keeps its tech edge, more firms adopt SOI for better performance and cost savings.
 

Asia Pacific is emerging as a key player in the SOI market. This growth is driven by rapid industrialization, a booming electronics sector, and rising demand for high-tech devices. China, Japan, and South Korea lead the way, investing heavily in semiconductor production and research. These efforts support the growing need for advanced technology in smartphones, IoT devices, and cars. The region's strong manufacturing base allows for high-volume SOI wafer production, boosting its global competitiveness. The rise of 5G networks and smart city projects is further fueling demand for SOI technology, making Asia Pacific a vital hub for semiconductor innovation and growth.
 

Silicon-on-Insulator Market Share

Competition in the silicon-on-insulator (SOI) industry revolves around technology innovation, cost efficiency, product quality, and customer support. Major players like GlobalFoundries, NXP Semiconductors, and Soitec invest in R&D to improve SOI fabrication and wafer performance, especially for low-power and high-frequency uses. Companies compete by offering various wafer sizes and thicknesses, crucial for telecom and automotive sectors. Supply chain reliability and quick delivery times are key factors. As demand for advanced semiconductors grows, success hinges on providing customized, innovative products at competitive prices.
 

Silicon-on-Insulator Market Companies

Major players operating in the industry are:

• Atomera
• GlobalWafers
• Honeywell International Inc.
• NXP Semiconductors
• Okmetic
• Qorvo
• Seiren KST
• Shanghai Simgui Technology
• Shin-Etsu Chemical
• Silicon Valley Microelectronics
• Skyworks Solutions
• Soitec
• STMicroelectronics
• Sumco
• Taiwan Semiconductor Manufacturing
• Tower Semiconductor
• Ultrasil
• Vanguard International Semiconductor
• WaferPro
   

Silicon-on-Insulator Industry News

• In July 2024, Atomera has announced a significant advancement in semiconductor technology with its new MST solution, which enhances RF-SOI (Radio Frequency Silicon-On-Insulator) wafer substrates. This innovation is poised to play a critical role in the development of components for 5G Advanced and 6G mobile communication systems.
   
• In July 2024, GlobalWafers has secured up to USD 400 million in funding from the U.S. Department of Commerce under the CHIPS and Science Act. This funding aims to enhance the production capacity for 300mm silicon wafers and expand the manufacturing of silicon-on-insulator (SOI) wafers in the United States.
   

This silicon-on-insulator market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) from 2021 to 2032, for the following segments:

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Market, By Wafer Type

• RF SOI
• FD SOI (Fully Depleted SOI)
• PD SOI (Partially Depleted SOI)
• Power SOI
• Others

Market, By Wafer Size

• 200mm
• 300mm

Market, By Technology

• Smart cut
• Bonding SOI
• Layer transfer SOI

Market, By Application

• RF FEM Products
• MEMS devices
• Power products
• Optical communication
• Image sensing
• Others

Market, By End-use Industry

• Consumer electronics
• Automotive
• Datacom & telecom
• Industrial
• Aerospace & defence
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia 
• Latin America
  • Brazil
  • Mexico
• MEA
  • UAE
  • Saudi Arabia
  • South Africa