Soitec Q1 Sales Down 16% Due to High Inventories and Weak Automotive Market

Soitec, a French semiconductor materials supplier, reported a 16% drop in Q1 sales at constant exchange rates due to high customer inventory and a weak automotive market. The company's revenue was 92 million euros ($108 million), in line with analysts' expectations. Despite this, Soitec expects Q2 revenue to grow around 50% organically from the previous quarter.

French semiconductor materials supplier Soitec (Euronext Paris) has announced its first quarter (Q1) revenue for fiscal year 2026 (FY’26), totaling €92 million. This figure represents a 16% year-on-year (YoY) decline on an organic basis, slightly better than the company's guidance. The reported revenue is down 24% compared to Q1’25, primarily due to a 5% negative currency impact and a 3% negative scope effect related to the divestment of Dolphin Design’s businesses [1].

The Q1’26 revenue reflects ongoing RF-SOI inventory correction among customers, a weak automotive market, the anticipated phase-out of first-generation Imager-SOI, and strong momentum in Photonics-SOI. Pierre Barnabé, Soitec’s CEO, commented that the Q1’26 revenue was slightly better than the guidance, down 16% YoY on an organic basis. The company expects Q2’26 revenue to grow around 50% versus Q1’26, on an organic basis [1].

Soitec’s revenue in Mobile Communications decreased to €43 million in Q1’26, down 7% YoY on an organic basis, primarily due to a significant decrease in 200-mm RF-SOI volumes sold. Sales of 300-mm RF-SOI wafers were higher than in Q1’25, driven by higher volumes, despite a slightly negative price/mix effect. Automotive & Industrial revenue reached €5 million in Q1’26, down 81% YoY on an organic basis, as expected, due to Power-SOI inventory replenishment at customer level. Edge & Cloud AI revenue was €44 million in Q1’26, up 13% YoY on an organic basis, despite the discontinuation of the first generation of Imager-SOI wafers for 3D imaging applications [1].

Soitec expects Mobile Communications revenue to remain low in Q2’26, despite nearly doubling from Q1’26, as customers continue to work through excess RF-SOI inventory. Automotive & Industrial revenue in Q2’26 is expected to decline sharply versus Q2’25. Projected FY’26 capital expenditure (Capex) cash-out is confirmed around €150 million, down from €230 million in FY’25 [1].

References:
[1] https://www.soitec.com/home/group/newsroom/press-releases/content/2025/07/22/soitec-reports-first-quarter-revenue-of-fiscal-year-2026