Soitec is implementing multi-year supply agreements that require fixed pricing and upfront cash deposits. Customers forfeit these deposits if they fail to purchase the agreed-upon volume of specialized wafers.
The French manufacturer's Photonics-SOI materials are essential for high-speed optical connections in AI data centers. Soitec currently holds an estimated 95% market share for silicon photonics substrates.
Revenue from this specialized segment is projected to more than double this fiscal year. The company expects sales to exceed $200 million as AI infrastructure demand intensifies.