X-FAB Silicon Foundries (XFAB) CMD 2025 summary

Strategic focus and technology pillars

• Emphasis on three technology pillars: smart power (BCD-on-SOI, SiC, GaN), advanced sensing (including silicon photonics), and next-level integration for miniaturization and cost efficiency.

• Targeting megatrends such as electrification, decarbonization, digital healthcare, smart cities, AI-driven demand, and sustainability.

• Unique co-creation model with customers, enabling long-term, sticky relationships and robust supply chains.

• Neutral geopolitical positioning as a European company with significant presence in the US and China.

• High barriers to entry and continuous innovation in specialty technologies, especially for the Chinese market.

Technology and business developments

• BCD-on-SOI, SiC, and GaN technologies drive efficiency in power generation, storage, and distribution, targeting automotive, industrial, and medical sectors.

• BCD-on-SOI revenue projected to grow 2.5x over five years and by 2030, already 14% of 2024 revenue.

• Sensing solutions account for 51% of production revenue, with silicon photonics as a new growth area and mass production planned for 2028.

• Microsystems business growing at 20% CAGR, expanding total addressable market and average selling price through 3D integration and advanced packaging.

• Leadership in SiC and GaN for high-power, high-efficiency applications, with unique co-creation engagement for fabless customers.

Capacity expansion and operational excellence

• $1.1 billion capex program (2023-2025) nearly complete, with full capacity available by end of 2026.

• Completed $1 billion capacity expansion, with new clean rooms and equipment across global sites, notably in Malaysia, France, Germany, and the US.

• By 2026, wafer output capacity will increase by 50%, with added value per wafer also up 50%.

• Automation and digital transformation initiatives underway to boost productivity, efficiency, quality, and asset utilization.

• Flexibility built into sites and processes, enabling dual sourcing and rapid technology transitions to ensure reliable supply.