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1 August 2008


GaAs microelectronics market to slow to 9% in 2008

Year-on-year growth in the GaAs industry will slow to 9% in 2008, predicts market research firm Strategy Analytics in its annual five-year outlook for the gallium arsenide microelectronics industry ‘GaAs Industry Forecast 2007-2012’ (which covers the vertical GaAs market supply chain, from bulk substrates through to epitaxial substrates to MMICs and discrete and digital ICs).

However, the study maintains previous guidance on long-term growth, and the market will break the $5bn barrier in 2011. Overall, the GaAs device market will grow at a CAAGR (compound annual average growth rate) of 9% through 2012.

Demand from cellular handsets will continue to be the primary growth engine for the GaAs industry, with Wi-Fi the second largest market. The corresponding market for GaAs (bulk and epitaxial) substrates will be worth $492m in 2012, with demand for six-inch diameter material bolstered by an expected decline in four-inch material use.

“In line with previous analysis, wireless infrastructure, satellite and DBS [direct broadcast satellite] markets will drive demand for GaAs discretes, though the overall market will show only a 1% CAAGR from 2007 to 2012,” notes Asif Anwar, director of the Strategy Analytics GaAs and Compound Semiconductor Technologies service. “Meanwhile, the market for digital GaAs ICs actually showed year-on-year growth for the first time in several years as a result of demand from the 10Gb/s fiber-optic markets,” he adds.

See related items:

GaAs market grew 17% to $3.6bn in 2007

Fab upgrades shift GaAs substrate demand from 4-inch to 6-inch

DBS GaAs component volumes to be driven by digital video

GaAs demand from digital cable to top $100m by 2012

Search: GaAs market GaAs substrates GaAs epitaxial wafers MMICs Wi-Fi Handset market