CEO Kai Seikku: Moving Forward Together with Semiconductor Market Recovery on the Horizon
The semiconductor industry is currently experiencing one of the longest and most severe downturns ever recorded. As the current downcycle extends well beyond two years, the peak demand seen in 2021-2022 is just a distant memory.
Global market slowdown, inflation eroding purchasing power, geopolitical changes as well as raises in energy prices and interest rates have led consumers, businesses, and governments to adopt cash conservation mode. In recent years, the semiconductor industry has also been shifting toward regionalization, driven by government incentives in the US, EU, China, Japan, and South Korea to boost domestic production. However, these increases in production capacity combined with sluggish post-pandemic era demand have led to overproduction, excess inventory and price pressure, particularly in traditional semiconductor segments.
While overall semiconductor device production volumes have declined, the total semiconductor market value has grown, with a few key players in computing, memory, and AI seeing notable success. In contrast, automotive and consumer markets remain weak, reflecting slower recovery and demand due to economic challenges. Reflecting these trends, 300mm wafer demand is picking up for advanced applications like AI and power semiconductors, while 150-200mm wafer demand lags, driven by soft activity in consumer and automotive electronics.
As the semiconductor value chain navigates the challenges of divided demand, cost optimization, selective investments, capacity adjustments, and the ongoing trend toward regionalization, the capital-intensive industry faces significant hurdles. To remain competitive, continued strategic investments are essential, and the supply chain must avoid unsustainable pricing practices that could undermine long-term stability.
Okmetic well-positioned for sustainable growth
Despite the prolonged downcycle, we remain confident in the industry’s long-term growth prospects and are investing heavily in the future. Okmetic strategically positions itself as a Europe-based, one-stop supplier catering to all 150 to 200 mm silicon wafer needs in the MEMS, RF and Power markets. To serve this goal, we have made significant investments over the past decade, including doubling our SOI production capacity between 2017 to 2021 and adding a patterning line to enable Cavity SOI (C-SOI®) production. To further support our commitment to growth and better serve our customers, Okmetic has invested in a large fab expansion for 200 mm SSP and DSP wafers set to be operational in Q2 2025. 200 mm wafers will remain key platform especially for MEMS and RF devices and GaN technologies. Additionally, they are also a popular choice for Power devices.
We anticipate that AI-driven demand will eventually extend to a broader range of semiconductor products and once the downturn passes, a longer upcycle is likely to begin in 2H2025. With our extensive product portfolio and increased capacity, Okmetic is well positioned to drive and support our customers’ growth in the future.
Despite current market challenges, the future of the semiconductor industry remains bright, and we are committed to navigating these times together. In 2025, Okmetic celebrates 40 years of advancing technology and building enduring customer relationships. Thank you for being part of our journey and for your continued trust.
