The idea of the silicon-on-insulator (SOI) technology is to replace the semiconductor below the channel region of a MOSFET with an insulator so as to eliminate or reduce the effects of the parasitic components. The resulting device contains only a thin film of semiconductor, which is partially or fully depleted underneath the gate. For fully depleted SOI this results in a number of advantages: the effects of the depletion capacitance per area and of the source and drain junctions are mostly eliminated, which results in an ideal subthreshold behavior (i.e. ), greatly reduced junction capacitances , and immunity against punch-through and alpha particles. Especially the good subthreshold behavior makes SOI attractive for low-voltage applications.
There are, however, some severe drawbacks of SOI, which have their origins in economics and circuit issues rather than in mere device physics: the cost for SOI wafers is much higher than for conventional bulk-technology wafers, the advantages of almost-zero junction capacitance cannot be fully exploited in a circuit because drains are always connected to other gates via interconnects and because of potential circuit instability. Finally, short-channel effects are somewhat reduced but not eliminated. This also limits the maximum allowable thickness of the substrate insulator, which results in a tradeoff between roll-off and DIBL on the one hand and subthreshold slope and drain capacitance on the other.
Thus, despite the remaining advantages of SOI, this technology is not a silver bullet against the spurious effects of bulk technology, all the more as many options of bulk technology have not been exploited yet. This has so far held back a transition to SOI for high-volume high-performance digital VLSI applications. In other fields such as smart-power technologies SOI is a well-established niche technology due to its excellent isolation properties and the integrability with high-voltage and high-power devices. This provides for an ongoing improvement of SOI wafer fabrication and keeps the SOI question for digital VLSI open.