Soitec Shares Climb on Partnership with China's Zensemi

Dow Jones06-29 18:16

Soitec shares jumped after the French semiconductor-materials maker said it would work with Chinese integrated circuit maker ZenSemi on advanced chip-making technology for artificial intelligence data centers, humanoid robots, electric vehicles and industrial equipment.

Soitec said it would supply ZenSemi with its 300-millimeter power-silicon-on-insulator substrates that the Chinese group will use to expand production of integrated circuits based on technology that allows high- and low-voltage components to be densely integrated onto a single chip.

Ruby Yan, vice president of sales and marketing at ZenSemi, said the technology, known as BCD-on-SOI, would help both domestic Chinese chip designers and international clients to build smaller, more robust, cost-optimized integrated circuits for AI, autos and other industries.

Soitec shares in Paris gained more than 5% on Monday. The stock is up more than fivefold since the year began, propelled by investor fervor around AI that lifted semiconductor stocks to new highs in recent months. Companies are pledging hundreds of billions of dollars in capital expenditures to build AI infrastructure that requires increasingly sophisticated semiconductors.

Steve Babureck, Soitec's U.S. operations president and chief strategy officer, said in an interview last month that the AI capex cycle was unprecedented in the history of semiconductors and that Soitec was fortunate that the focus at the moment is on data centers.

Headquartered just outside Grenoble in southeastern France, Soitec produces semiconductor materials known as substrates that serve as the base layer upon which the integrated circuits and chips that are found in smartphones, tablets and data centers are built. Soitec sells its products to foundries--businesses like ZenSemi that have the facilities to produce semiconductors for the companies that designed and commissioned them.

Write to Mauro Orru at mauro.orru@wsj.com

(END) Dow Jones Newswires

June 29, 2026 06:16 ET (10:16 GMT)

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Soitec Shares Climb on Partnership with China's Zensemi

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