Soitec scales back its ambitions in a slowing market

French semiconductor materials supplier Soitec announced on Tuesday that it was withdrawing its financial targets for the current fiscal year and the medium term, citing prolonged weak demand in the automotive and industrial segments. This decision is accompanied by an immediate change in the group's financial management and a 23% drop in its share price.

In a press release, Soitec stated: "Given the reduced visibility and current market uncertainties, the group is withdrawing all forecasts, whether they concern all or part of its activities." The company will now only provide quarterly guidance. In the wake of this, the group announced the dismissal of its chief financial officer and relegated its figures to the background. Soitec's share price fell 23% at the opening.

The group ended the financial year with revenue of €327 million, below the consensus estimate of €336 million. The cloud and mobile segments are losing momentum.

Apple's heavy loss

The group is forecasting a 20% drop in revenue in the first quarter (at constant exchange rates) compared with the €121 million recorded in the same period last year. This decline is mainly due to the end of its partnership with Apple, for which Soitec supplied the Face ID sensor for iPhones.

"Soitec has revised its revenue forecast for the first quarter of fiscal year 2026 down 20% year-on-year, as Apple/STM will no longer use the SOI imager for the Face ID sensor in iPhones starting with the iPhone 17," explained Janardan Menon, analyst at Jefferies. "This represented $25 million for the first quarter of fiscal 2025. Soitec's outlook for fiscal 2026 remains challenging, given the prolonged inventory correction at its foundry customers and the absence of structural growth drivers in the short term outside of POI."

Change of CFO amid strategic transition

At the same time, Soitec announced the immediate departure of its Chief Financial Officer, Léa Alzingre, who will be replaced by Albin Jacquemont, an experienced executive who has held similar positions at French groups such as Carrefour, Suez, and Fnac Darty. "He has led major financial transformations and added value through improved operational performance, cash flow optimization and the execution of mergers and acquisitions," said Soitec.

Cautious outlook in a difficult environment

Back in February, Soitec lowered its targets for 2025, warning of limited growth for 2026. The company is suffering from a sharp slowdown among its customers in the automotive and consumer electronics sectors, which are facing deteriorating market conditions.

In a still uncertain global environment for the semiconductor industry, Soitec is opting for caution and refocusing its financial communication on the short term, while reorganizing its management to steer this transition phase.