Why Soitec (ENXTPA:SOI) Is Up 14.5% After New FD-SOI Substrate Security Breakthrough in Automotive Chips

• On October 20, 2025, CEA announced with Soitec that their Fully Depleted Silicon-on-Insulator (FD-SOI) substrates offer strong intrinsic protection against fault injection attacks, a critical threat cited by automotive cybersecurity standards.
• This collaboration's research found that FD-SOI substrates make it up to 150 times harder to compromise chips compared to traditional silicon, marking a potential shift in the security landscape for automotive electronics.
• We'll explore how Soitec's advancement in FD-SOI substrate security could influence its investment narrative and position in automotive technology.

Find companies with promising cash flow potential yet trading below their fair value.

Soitec Investment Narrative Recap

To be a shareholder in Soitec, you need to believe in the company’s ability to drive long-term demand for advanced semiconductor substrates across expanding applications like automotive, data center, and IoT. The recent CEA partnership showcasing FD-SOI substrate security is a meaningful innovation, yet its ability to move the needle short term is limited, as the key near-term catalyst is still a sustained recovery in core RF-SOI and management of customer inventories.

The October 1, 2025 announcement of Soitec’s strategic partnership with CEA-Leti, focused on enhancing FD-SOI circuit cybersecurity, is especially timely given the latest proof of FD-SOI’s resilience to fault injection attacks. This strengthens Soitec’s narrative around capturing growth in automotive and industrial IoT, but with recent automotive demand headwinds, the full benefit could take time to materialize. Contrast this, however, with risks that investors should be aware of if customer inventory normalization stays delayed or...

Read the full narrative on Soitec (it's free!)

Soitec is projected to reach €928.3 million in revenue and €95.2 million in earnings by 2028. This outlook is based on an anticipated 1.4% annual revenue growth rate and an earnings increase of €4 million from current earnings of €91.2 million.

Uncover how Soitec's forecasts yield a €48.65 fair value, a 16% upside to its current price.

Exploring Other Perspectives

Four community members on Simply Wall St gave fair value estimates for Soitec between €25.01 and €86.42, spanning over threefold. With short-term RF-SOI demand recovery uncertain, these wide-ranging views underscore the importance of comparing several perspectives on what could drive upcoming performance.

Explore 4 other fair value estimates on Soitec - why the stock might be worth 41% less than the current price!

Build Your Own Soitec Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Soitec research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Soitec research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Soitec's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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