Strategy Analytics Says GaAs Bulk Substrate Market Defies Recession
Source/Type: News - Staff reports

Author: CompoundSemi News Staff

July 12, 2010... Strategy Analytics reports that the GaAs substrate market posted a 10 percent year on year increase in substrate volumes. The company says that the slowdown in early 2009 was followed by a robust recovery in the second half of the year, driven by the demand for next generation cellular handset platforms. Strategy Analytics says that orders started to filter through in the second quarter of 2009 as end-users looked to re-build stock levels. Additionally the company's models showed that by the end of the quarter that the market started to see robust demand for materials and devices through the GaAs industry supply chain.

The company's report entitled, "Semi-insulating GaAs Substrate Markets: 2009-2014,” forecasts volume demand growing at a CAAGR of 12% through 2014. Strategy Analytics says that the GaAs substrate market is worth $217 million based on an examination of supply chain dynamics, coupled with extensive analysis of end-demand drivers for SI GaAs bulk substrates.

“The strong recovery was helped by an incumbent position in the overall Power Amplifier (PA) market for cellular terminals,” noted Asif Anwar at Strategy Analytics. “This was further helped with the RF (radio frequency) front-end architectural requirements of next generation handsets.” Mr. Anwar concluded, “Next generation handsets dictate an increase in the ratio of PAs per terminal as well as more complex switching requirements. This helped the market for SI GaAs bulk substrates to maintain recession-defying growth in 2009. It will also underpin growth moving forward.”

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