Abstract In this study, the U-net with ResNet-34, i.e. a residual neural network with 34 layers, backbone semantic segmentation network is applied to C-band sea-ice SAR imagery over the Baltic Sea. Sentinel-1 Extra Wide Swath mode HH/HV-polarized SAR data acquired during the winter season 2018–2019, and corresponding segments derived from the daily Baltic Sea ice charts were used for training the segmentation algorithm. C-band SAR image mosaics of the winter season 2020–2021 were then used to evaluate the segmentation. The major objective was to study the suitability of semantic segmentation of SAR imagery for automated SAR segmentation and also to find a potential replacement for the outdated iterated conditional modes (ICM) algorithm currently in operational use. The results compared to the daily Baltic Sea ice charts and the operational ICM segmentation and visual interpretation were encouraging from the operational point of view. Open water areas were located very well and the oversegmentation produced by ICM was significantly reduced. The correspondence between the ice chart polygons and the segmentation results was also reasonably good. Based on the results, the studied method is a potential candidate to replace the operational ICM SAR segmentation used in the Copernicus Marine Service automated sea-ice products at Finnish Meteorological Institute.