Global Silicon on Insulator Market Trends, Forecast Report 2025-2037
Silicon on Insulator Market size was valued at USD 1.4 billion in 2024 and is expected to reach USD 8.1 billion by the end of 2037, growing at a CAGR of 15% during the forecast period from, 2025-2037. In 2025, the industry size of silicon on insulator is estimated at USD 1.5 billion.
The silicon on insulator market is undergoing a sophisticated global supply chain that includes the procurement of ultra-high-purity silicon, advanced fabrication methods, and international distribution networks. Key production techniques such as SIMOX (Separation by IMplantation of OXygen), wafer bonding, and Smart Cut require highly specialized materials and precision engineering, often relying on cross-border sourcing. As a result, the market is sensitive to global political and economic instability. For instance, supply interruptions of high-purity silicon or critical implantation tools can significantly delay manufacturing and inflate costs. The global migration of SOI wafers and associated inputs is also controlled by trade regulations and tariffs, which directly impact pricing and product availability across regions.
Technological advancement remains a primary driver for the SOI industry. Government bodies and research institutions have substantially invested in improving SOI technologies. The U.S. Department of Energy, for instance, has backed research into next-generation semiconductor materials and fabrication technologies, which may improve SOI performance and reduce costs. These initiatives target improved wafer quality and wider applicability in sectors such as automotive and telecom. Public-private collaborations further accelerate commercialization, allowing laboratory innovations to scale to industrial production. Although specific investment figures are not provided, the trajectory clearly reflects continued strategic investment in SOI R&D.
Silicon on Insulator Sector: Growth Drivers and Challenges
Growth Drivers
- Rising demand for energy-efficient semiconductors: The transition to low-power electronics is a primary driver for SOI adoption, especially through FD-SOI technology. FD-SOI allows up to 40% lower power consumption as compared to traditional bulk CMOS, making it suitable for battery-powered devices like smartphones, IoT sensors, and wearables. As energy efficiency becomes a design priority in all electronics sectors, the advantages of FD-SOI in minimizing leakage current and optimizing thermal performance continue to support demand.
- Expansion of 5G and advanced RF applications: The expansion of 5G infrastructure worldwide is significantly boosting the adoption of Radio Frequency SOI (RF-SOI). RF-SOI substrates offer extremely superior signal quality and integration for RF front-end modules used in 5G smartphones and base stations. For instance, South Korea reported 48% 5G mobile connections in 2023, with widespread use of RF-SOI components. The scalability and efficiency of RF-SOI make it foundational for high-frequency communication technologies.
- Rising adoption in automotive and industrial sectors: SOI's built-in radiation hardness and thermal stability make it ideal for harsh environments such as automotive and industrial systems. In Advanced Driver Assistance Systems (ADAS), electric vehicles, and Micro-Electro-Mechanical Systems (MEMS), SOI provides high reliability under severe conditions. With automotive electronics projected to capture over 45% of total vehicle cost by 2030, SOI technologies are becoming increasingly important in this domain.
Major Technological Innovations in the Silicon on Insulator Market
The silicon on insulator market is facing rapid evolution, driven by technological innovations that improve semiconductor efficiency across multiple sectors. One prominent development is the growing adoption of Fully Depleted SOI (FD-SOI) technology, which delivers power savings over conventional CMOS, positioning it as a key solution for low-power applications. In the telecommunications sector, Radio Frequency SOI (RF-SOI) plays a crucial role in advancing 5G infrastructure, leading to increased 5G connectivity. The automotive industry also relies on SOI technology for its high thermal capability and resistance to radiation, which are critical factors for Advanced Driver Assistance Systems (ADAS) and electric vehicles. These advancements together highlight the strategic value of SOI technology in driving innovation and meeting performance needs across several end-use fields. The table below highlights the current technology trends and their impact on various industries.
|
Trend |
Industry Impact |
Adoption Example |
|
FD-SOI Technology |
Up to 42% power savings |
SRAM cells using FD-SOI achieve 41% lower power consumption |
|
RF-SOI Integration |
5G network expansion |
49% of mobile connections in South Korea use RF-SOI components |
|
SOI in Automotive Electronics |
Enhanced thermal stability |
Supports ADAS and EVs with improved heat and radiation resistance |
|
SOI-based MEMS Devices |
Increased manufacturing precision |
Boosts performance of MEMS in industrial applications |
|
SOI in Consumer Electronics |
>62% device adoption |
Over 62% of mobile devices use SOI-based chips |
Supply Chain Resilience in the Global Silicon on Insulator Market
The global silicon on insulator market is strengthening supply chain resilience by utilizing digital technologies, expanding supplier networks, and combining sustainability into operations. Companies are deploying AI-powered predictive analytics to monitor disruptions, streamline inventory management, and accelerate delivery timelines. Sustainability is also becoming a core component of supply chain strategies. Unilever, for example, has pledged to achieve net-zero emissions across its product portfolio by 2039, prompting innovation across sourcing, production, and logistics processes to minimize environmental impact.
|
Strategy |
Company |
Outcome |
|
AI Predictive Analytics |
DHL |
17% increase in on-time deliveries; 21% reduction in shipment delays (2023) |
|
Supplier Diversification |
ON Semiconductor |
$3B investment in Czech Republic plant (2024); capacity expanded in South Korea |
|
Sustainability Initiatives |
Unilever |
Net-zero emissions target by 2039; 14% CO₂ reduction in logistics (2024) |
Challenges
- High manufacturing costs: The high production cost of SOI wafers compared to conventional bulk silicon wafers is a significant challenge to the silicon on insulator market. SOI manufacturing includes complex processes such as Smart Cut, SIMOX, and wafer bonding, all of which require specialized equipment, precision engineering, and high-purity materials. These processes significantly increase the capital and cost of operational expenditures. According to data from the Semiconductor Industry Association, SOI wafers can be up to 3–5 times more costly than traditional silicon wafers, particularly in advanced nodes below 28nm. This pricing gap restricts adoption in cost-sensitive segments such as entry-level consumer electronics or emerging market devices.
Furthermore, the limited number of SOI wafer suppliers worldwide, such as Soitec and Shin-Etsu, contributes to supply constraints and pricing rigidity, making it harder for new entrants or small-scale manufacturers to compete effectively. As demand grows in sectors like 5G, automotive, and IoT, managing and reducing these costs will be critical to unlocking the full potential of SOI technologies.
Silicon on Insulator Market: Key Insights
| Report Attribute | Details |
|---|---|
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
15% |
|
Base Year Market Size (2024) |
USD 1.4 billion |
|
Forecast Year Market Size (2037) |
USD 8.1 billion |
|
Regional Scope |
|
Silicon on Insulator Segmentation
Wafer Type (Fully Depleted SOI (FD-SOI), Partially Depleted SOI (PD-SOI), Radio Frequency SOI (RF-SOI), Power SOI, Photonics SOI, Imager SOI)
The Fully Depleted SOI (FD-SOI) segment is poised to account for a 39.5% share throughout the forecast timeline owing to its superior energy efficiency and performance benefits. FD-SOI wafers allow up to 40% lower power consumption and reduced leakage current, making them ideal for low-power applications like wearables, smartphones, and IoT devices. Additionally, the FD-SOI tech solves a vital pain point by providing outstanding heat management, which is significant in 5G and automotive electronics. In terms of deployment, leading semiconductor manufacturers such as GlobalFoundries and Samsung have adopted FD-SOI for advanced node development.
Product (Radio-Frequency Front-End Module (RF FEM), Microelectromechanical Systems (MEMS), Power Devices, Optical Communication, Image Sensing)
The Radio-Frequency Front-End Module (RF FEM) segment is anticipated to account for a significant revenue share of 58.5% by the end of 2037 due to the global rollout of 5G networks and rising demand for high-frequency communication devices. RF FEMs built on SOI substrates offer superior signal integrity, reduced power loss, and better integration of multiple RF components. The heightened demand is set to emerge from economies that have been at the forefront of nationwide 5G penetration, as the segment is pivotal in the push for advanced wireless connectivity.
Our in-depth analysis of the global silicon on insulator market includes the following segments:
|
Wafer Type |
|
|
Product |
|
|
Technology |
|
|
Application |
|
Want to customize this research report as per your requirements? Our research team will cover the information you require to help you take effective business decisions.
Customize this ReportSilicon on Insulator Industry - Regional Synopsis
North America Market Analysis
The North America silicon on insulator market is expected to register a dominant revenue share of 30.0% by the end of 2037, due to rising demand across the modern communication and automotive industries. Increased investment in smart infrastructure and edge computing is increasing the use of SOI wafers due to their low power consumption and thermal efficiency. Top players in the region are broadening manufacturing capacity by collaborating with government agencies on semiconductor innovation. Additionally, the strong semiconductor ecosystem in North America supports R&D and streamlines market integration.
The U.S. silicon-on-insulator market is expanding rapidly due to substantial government funding and private sector innovation in high-performance electronics. Programs such as the CHIPS Act and BEAD are motivating domestic semiconductor capabilities, indirectly promoting SOI-based technologies. The rollout of 5G and autonomous vehicle development is leading to demand for RF-SOI and FD-SOI solutions. U.S. companies are highly utilizing AI and IoT advancements, where SOI's energy efficiency offers an added advantage. As of 2023, the U.S. was a key player in patents and research output related to SOI applications, reinforcing its leadership in the global market.
Asia Pacific Market Analysis
Asia Pacific is projected to exhibit the fastest growth of 16.5% during the forecast period due to the region’s key role in semiconductor manufacturing globally and rising demand for high-performance, low-power electronics. Countries such as China, South Korea, and Japan are accelerating the adoption of SOI-based solutions to support advancing 5G infrastructure, EV production, and consumer electronics. Regional foundries are also forming strategic partnerships to advance FD-SOI and RF-SOI capabilities. The silicon on insulator market is further propelled by favorable government policies and regional supply chain integration.
China is anticipated to lead the Asia-Pacific market in revenue by the end of 2037, fueled by its national push for semiconductor self-sufficiency and high-end chip development. The Ministry of Industry and Information Technology (MIIT) has prioritized funding for next-generation IC technologies, including FD-SOI, to reduce dependence on imports. Major foundries in the country are expanding production of silicon to address huge demand from 5G, smart manufacturing, and AI industries. In 2023, SOI-based RF chips recorded a notably higher integration in domestic smartphone brands. Additionally, government-backed research institutions are driving innovation in SOI processes, keeping China as a rising force in the global SOI landscape.
Companies Dominating the Silicon on Insulator Landscape
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
The global silicon on insulator market features a competitive landscape of both established leaders and emerging contenders, competing through technological innovation and market expansion. Dominant players such as Shin-Etsu Chemical and Soitec maintain their higher edge with strong R&D efforts and strategic partnerships. Meanwhile, Japanese firms such as Murata and Sony are applying their strengths in materials science and miniaturization to address the rising demand for SOI in sectors like consumer electronics and automotive. These initiatives reflect the sector’s dedication to innovation, resilience, and meeting evolving ICT industry demand. Given below is a table of the top players in the market with their respective shares.
|
Company Name |
Country of Origin |
Estimated Market Share (%) |
|
Soitec SA |
France |
22% |
|
GlobalWafers Co., Ltd. |
Taiwan |
16% |
|
GlobalFoundries Inc. |
USA |
6% |
|
STMicroelectronics |
Switzerland |
xx% |
|
ON Semiconductor Corporation (onsemi) |
USA |
xx% |
|
NXP Semiconductors N.V. |
Netherlands |
xx% |
|
Tower Semiconductor Ltd. |
Israel |
xx% |
|
United Microelectronics Corporation |
Taiwan |
xx% |
|
Siltronic AG |
Germany |
xx% |
|
Okmetic Oy |
Finland |
xx% |
|
Silicon Valley Microelectronics Inc. |
USA |
xx% |
|
SUMCO Corporation |
Japan |
xx% |
|
Shin-Etsu Chemical Co., Ltd. |
Japan |
xx% |
|
Murata Manufacturing Co., Ltd. |
Japan |
xx% |
|
Sony Semiconductor Solutions Corp. |
Japan |
xx% |
Given below are the areas covered for each company in the silicon on insulator market:
In the News
- In March 2025, Shin-Etsu Chemical introduced a renewable energy project in Rayong Province, Thailand, using a biomass cogeneration system powered by locally sourced wood chips. Implemented with NS-OG Energy Solutions (Thailand) Ltd., the project is set to cut greenhouse gas emissions by about 48,000 tons annually, underscoring Shin-Etsu’s promise of sustainable SOI wafer production.
- In December 2024, Soitec collaborated with GlobalFoundries to supply 300mm RF-SOI wafers for GF’s new 9SW radio platform, targeted at powering advanced 5G and Wi-Fi solutions. This alliance supports the growing demand for high-efficiency, compact RF chips essential for next-gen wireless technologies like 5 G-Advanced and future 6G applications.
Author Credits: Abhishek Verma
- Report ID: 5270
- Published Date: Jun 05, 2025
- Report Format: PDF, PPT
