Strategy Analytics Says Market Growth of GaAs Device Market to Likely Stop in 2012
Source/Type: News - Staff reports

Author: CompoundSemi News Staff

February 13, 2012... Strategy Analytics (SA) says that preliminary results indicate that GaAs Device revenue increased 5-6 percent during 2011 over 2010 levels. The company says that the 2011 levels were above even the previous high of $5 billion in total revenue in 2010. According to SA, the growth rate during 2010 of the GaAs device market proved to be unsustainable.

SA says that despite achieving another record revenue level, some signs seem to indicate that 2012 will be a challenging year. SA points out that slowing growth in smartphone penetration, an unsettled global economy with some regions facing significant uncertainty, and the aftermath of the earthquake and tsunami in Japan will likely stop GaAs device growth in 2012.

“Tremendous growth in the smartphone segment of the handset market in 2010, and the early part of 2011, had propelled the overall GaAs market to record levels of revenue which are now slowing,” noted Eric Higham, Director of the Strategy Analytics GaAs and Compound Semiconductor Technologies Service. “However, increasing GaAs content in handsets and the sheer volume of the handset market should still power GaAs growth.”

Asif Anwar, Director, Strategy Analytics Strategic Technologies Practice, added, “There were revenue declines in the second half of 2011 at GaAs substrate manufacturers."

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