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26 February 2009


GaAs device market consolidates on top three after 9% growth in ‘08

The gallium arsenide (GaAs) device market grew 9% from $3.5bn in 2007 to $3.9bn in 2008, according to a report from market research firm Strategy Analytics (confirming its forecast). Merchant demand for GaAs devices continues to be focussed on MMIC-based products targeted at the wireless sector.

The industry consolidated further around the leading players, with the top ten GaAs device makers (including Avago Technologies, M/A-COM and Mitsubishi Electric) accounting for up to 82% of the overall market. In particular, RFMD, Skyworks and TriQuint grew their collective market share from 53% to 59%, says Strategy Analytics. Although TriQuint and Skyworks closed the gap on RFMD through increased market share, RFMD held onto its place as the world’s biggest supplier of GaAs-based RF components.

“Overall 2008 was a very good year, but growth in the GaAs industry hit a wall in the fourth quarter and 2009 will see industry revenues decline by 5-6%,” notes Strategy Analytics’ Asif Anwar. Previously, Strategy Analytics had expected market growth in 2009, before revising its forecast downwards in mid-December.

“However we believe 2009 also presents an opportunity for the market leaders to squeeze out their competition, provided they can successfully leverage existing relationships while continuing to tap into adjacent markets and emerging opportunities,” says Anwar.

See related items:

GaAs device market to shrink 5% in 2009

GaAs microelectronics market to slow to 9% in 2008

GaAs market grew 17% to $3.6bn in 2007

Search: GaAs device market GaAs Avago M/A-COM Mitsubishi Electric RFMD Skyworks TriQuint