Soitec and Simgui close deal to distribute SOI in China

SOITEC (Euronext) and China’s Shanghai Simgui Technology have recently signed an agreement for the exclusive distribution of the former’s 200mm silicon-on-insulator (SOI) wafers in China.

The deal between the France-based world leader in semiconductor materials for the electronics and energy industries and the Chinese silicon-based semiconductor materials company is a key step in establishing a Chinese SOI ecosystem. It also strengthens Soitec's presence in this double-digit-growth semiconductor market in China. 

In addition, the recent agreement strengthens the initial strategic collaboration between the two companies, which includes a license and technology transfer deal. Under this agreement, Simgui can manufacture Soitec's 200mm SOI wafers using its proprietary Smart Cut? technology. 

The 200mm SOI wafers are suitable for fabricating semiconductors such as radio-frequency (RF) integrated circuits (ICs) for use in smartphones and power ICs for automotive applications. They are available in different product families.
Dr. Thomas Piliszczuk, senior vice president of global sales and marketing at Soitec, said that the distribution agreement forms part of the company’s growth strategy, reinforcing the strategic collaboration with Simgui toward strengthening Soitec's global leadership position in the SOI ecosystem. 

"China is going to play a major role in the global mobile electronics business segment. Through this distribution agreement with Simgui, Soitec is well positioned in the heart of the Chinese ecosystem, enabling us to further accelerate the growth of our SOI products in the world's largest semiconductor market," Mr. Piliszczuk said,

Currently the largest semiconductor market, China has the highest growth potential for LTE smartphones, according to International Business Strategies Inc. RF-SOI wafers, in particular the widely adopted Soitec eSi? substrate, are used in the RF circuits of most of today’s 4G/LTE smartphones. The Smart Power? SOI, one of Soitec's 200mm SOI products, is used around the world for making power ICs for automotive electronics, lighting, and power supplies. 

According to Simgui general manager Dr. Feng Zhang, the combination of the company’s local market knowledge and robust SOI distribution network and Soitec's leading-edge SOI substrates will enable both to serve Chinese semiconductor manufacturers better. “As one of the biggest local engineered-substrate providers in China, we are very excited by the distribution agreement with Soitec. I do believe that this cooperation will be very successful and will help drive the adoption of Soitec's SOI products in China," Dr. Zhang added.