August 31, 2026, (Inside AI) — Soitec, the French chip materials supplier, is locking customers into multi-year supply agreements with cash deposits and fixed pricing. The move comes as demand for its photonics-SOI wafers surges in AI data centre optics.
CEO Laurent Remont confirmed that more than 10 capacity reservation agreements are in play. Around 80% should be signed within a week or two, with the remainder expected within a month.
"We are using the current situation to find the right balance between the value we bring and the price we can ask," Laurent Remont, CEO, Soitec
Soitec told investors last month that photonics-SOI revenue would more than double this financial year from slightly above $100 million. Remont now calls the implied $200 million figure "absolutely a floor."
Demand for silicon photonics has surged as hyperscalers increasingly use optical connections to move data inside AI infrastructure. Copper links are becoming less attractive because of power and performance constraints.
Soitec supplies the substrate underpinning almost all silicon photonics chips. UBS estimates it holds a 95% share of the market. The stock has almost quadrupled this year as demand for AI-related optical networking has accelerated.
Deposits Forge Skin In The Game
The contracts fix a price and require a deposit tied to committed demand. Customers that take the agreed volume get the deposit back; those that fall short forfeit it. Volumes above the agreed level trigger new pricing discussions.
"That's a way for us to have our customer with skin in the game," Laurent Remont, CEO, Soitec
Customers must also share inventory data. This requirement aims to prevent companies from over-ordering capacity to keep wafers away from competitors.
No New Fab Needed Before 2029
Soitec does not expect to need a new plant until around 2029. The company is pursuing two expansion levers already: shifting output between businesses using shared underutilised facilities and installing additional tools in existing cleanroom space.
"With that we will cover easily this year and next year," Laurent Remont, CEO, Soitec
The cleanroom capacity includes part of a French facility originally built for silicon carbide production. That facility was written down by 41 million euros ($47.7 million) last year.
Soitec produced photonics-SOI only in France until five months ago. Since then, it has qualified customers at a facility in Singapore. A third lever, an unequipped building in Singapore, could add capacity within six to 12 months if required.
"We can increase quickly without building a completely new fab, just equipping a building," Laurent Remont, CEO, Soitec
Remont sees no need for a U.S. plant "at this stage." Customers, he said, are "more desperate to get wafers than being too picky about where the location for production is."
The cash deposits have not yet been paid and will arrive in stages as customers ramp production. This structure gives Soitec visibility into demand while aligning customer incentives with actual consumption.
