Pierre Barnabe highlights long-term potential in emerging sectors like electric vehicles and smartphones
While the semiconductor industry is currently facing a downturn, Soitec CEO Pierre Barnabe remains confident that the sector will soon return to growth, driven by high demand for components in emerging markets, particularly electric vehicles. In an interview with The Business Times (BT), Barnabe expressed optimism, pointing to the increasing capabilities of smartphones and the growing number of components needed in new-generation electric cars as key growth drivers.
Barnabe, who took over as CEO of Soitec in July 2024, noted that the global semiconductor market is expected to reach a trillion-dollar valuation by 2030. While acknowledging that market slumps are inevitable, he highlighted that well-established companies like Soitec, which are deeply involved in dynamic sectors such as smartphones, cars, and smart devices, are likely to fare better during these periods.
“These sub-sectors are more dynamic, and that gives us optimism in the long run,” he said.
Soitec is also showing its commitment to growth by expanding its operations in Singapore. On December 9, the company broke ground on a 400 million euro (S$571.2 million) extension to its Wafer Fab Park in Pasir Ris, a move that will significantly boost its production capacity. The new extension, set to be completed in 2024, will focus on producing 300 millimetre silicon-on-insulator wafers, essential for chips in smartphones, electric and autonomous vehicles, and other smart devices. This expansion will double Soitec’s annual wafer production capacity in Singapore to around two million wafers, while also contributing to the company’s global goal of increasing its total annual production capacity to 4.5 million wafers by FY2026.
The extension will add 45,000 square metres of clean room and office space to Soitec’s Singapore facility, and the company plans to double its local workforce to over 600 by 2026.
The groundbreaking ceremony also highlighted Singapore’s growing importance in the semiconductor industry. Minister of State for Trade and Industry Low Yen Ling expressed confidence in the sector, noting that it contributes 7% to Singapore’s GDP. She highlighted the role of global partnerships, such as with Soitec, in strengthening Singapore’s leadership in the semiconductor value chain.
French Ambassador to Singapore Minh-di Tang also acknowledged Singapore’s efforts to position itself as a key regional player in the industry, with significant investments from European, American, and Asian companies. Barnabe echoed this sentiment, stating that Singapore is poised to play a vital role in the global semiconductor industry’s future growth.
