FREE subscription
Subscribe for free to receive each issue of Semiconductor Today magazine and weekly news brief.

 

News

Share/Save/Bookmark

3 September 2009

 

GaAs industry to shrink 5% in 2009

Due to the global economic meltdown, year-on-year growth in the gallium arsenide market slowed from its previous forecast of 9% to 6% in 2008 and is projected to shrink 5% in 2009, wiping out the gains made last year, according to the annual GaAs industry forecast and outlook from market research firm Strategy Analytics. The GaAs market should generate revenues of $3.5bn in 2009, it adds.

“The GaAs industry effectively shut down as handset manufacturers turned off the taps in the final quarter of 2008,” notes the firm’s Asif Anwar. “However, Strategy Analytics believes that the market has bottomed out and multiple GaAs device insertions in cellular handsets will be augmented by demand from other wireless markets as well as requirements from defense, consumer, fiber-optic and automotive sectors,” he adds.

Demand from wireless markets, including cellular handsets, will continue to be the primary growth engine for the GaAs industry. While Strategy Analytics expects growth to return in 2010, with all major end-demand sectors growing through 2013, industry revenues will fall short of previous expectations of $5bn. The overall growth will be tempered as a result of the economic downturn, and growth will show signs of flattening out in 2013. Overall, the GaAs, RF and microelectronic device market will grow at a CAAGR (compound annual average growth rate) of 4% through 2013, to $4.5bn.

See related items:

SI GaAs epi market set for growth in 2010

SI GaAs substrate market to shrink just 1% in 2009

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

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 GaAs market

Visit: www.StrategyAnalytics.com