Semiconductors French Community

Catalysts EV and renewable energy demand (SiC chips) Growth in AI, IoT, and automation Government incentives for chip production Assumptions Revenue Projection (5 Years) Estimate: ~$22-25 billion by 2029 Reasoning: Current revenue : ~$17 billion Annual growth rate : ~5-6% CAGR (historical + industry trend) Growth drivers : Electric Vehicles (EVs) → SiC demand surging IoT & AI expansion → Increased adoption in smart devices Automotive & industrial electronics → Rising semiconductor integration China market expansion → Key growth opportunity Where do you think earnings will be in 5 years time? and why?

Fair Value is based on 5 analyst following the company. The company is active in the domain of semi-conductors so highly volatile but the story behind this company is very appealing : It is a family owned company with a management being there already for longtime and having themselves important stakes They have a very tight relation of being the producers of Melexis (that only conceives chips) qnd hence is assured by a steady flow of orders The current figures are biased by a hefty investment in building up extra capacity They do not target high volumes as this is a battle they can not win, they are just strong in making small to medium batches The major risks and attention points are : Will follow the volatily of the semiconductor business Linked to auto industry so if this one is suffering XFab will perform weaker as well They realize high margins but if Revenue is not attained immediate impact on the bottom line as there are consequent sunk costs.

Key Takeaways Leadership in electric vehicles, industrial automation, and AI data center power solutions is fueling design wins, supporting sustained growth and improved margins. Strategic cost savings, advanced material investments, and local manufacturing initiatives strengthen market share and long-term revenue stability as global demand evolves.

Key Takeaways Rising AI, wireless, and connected device trends are driving strong, diversified demand for Soitec's advanced substrates, supporting long-term growth and reduced revenue volatility. Disciplined expansion, automation, and ongoing innovation strengthen technological leadership, enable profitability gains, and reinforce high barriers to entry.

Key Takeaways Soitec's leadership in advanced engineered substrates, expanding product adoption, and focus on next-generation wireless and AI data centers position it for accelerated revenue and margin growth. Unique substrate technologies and geographic footprint enable Soitec to benefit from industry shifts toward semiconductor reshoring, electric vehicles, and data-driven applications, supporting long-term structural growth.

Key Takeaways Ongoing commoditization, technology shifts, and customer concentration threaten Soitec's pricing power, margins, and long-term revenue stability. Geopolitical tensions, regulatory pressures, and labor shortages are raising operational costs and complexity, hindering market access and profitability.

Key Takeaways Electrification trends and new capacity expansions are driving record automotive and industrial revenues, with increased operating leverage and rising margins. Proprietary technology and high barriers to entry strengthen pricing power, customer loyalty, and position X-FAB for superior market share and profitability.

Key Takeaways Expansion into advanced manufacturing and leadership in silicon carbide position the company for accelerated, high-margin growth across automotive, industrial, and energy sectors. Diversified customers and regionalized production provide resilience and pricing power amid shifting trade and technology adoption trends.

Key Takeaways Geopolitical tensions, environmental regulations, and market commoditization are raising costs and eroding profitability across X-FAB's core markets and manufacturing operations. Dependence on cyclical auto and industrial sectors, alongside intense capex needs, exposes X-FAB to stagnation risks and greater earnings volatility amid uncertain demand.