1 November 2011

GaAs epi substrate area to grow at 6% CAAGR over 2010-2015

As mobile handsets and network infrastructure become more sophisticated, gallium arsenide device usage in these applications is increasing, driving growth in the consumption of GaAs epitaxial wafers. Commercial and military applications resulted in demand for semi-insulating (SI) GaAs epi substrates (merchant and captive) growing by more than 30% to slightly more than 29600 ksi (kilo square inches) in 2010, according to the Strategy Analytics GaAs and Compound Semiconductor Technologies Service (GaAs) Forecast and Outlook ‘Markets for SI GaAs Epitaxial Substrates: 2010-2015’.

Growth in GaAs devices will lead to a compounded average annual growth rate (CAAGR) of 6% over 2010-2015 to more than 40,200 ksi. However, falling prices will limit the growth in total market value to a CAAGR of 1%, to revenue of $543m in 2015.

The market research firm forecasts that 6-inch GaAs epi substrates will be the most prevalent, accounting for slightly more than 80% of total device demand over the forecast period. With cost-sensitive, high-volume markets dominating demand for GaAs devices, the report forecasts a CAAGR of 9% for 6-inch GaAs epi substrates.

“Strong growth in the overall GaAs device market in 2010 propelled the GaAs epitaxial substrate market to solid gains,” notes Eric Higham, director of the Strategy Analytics GaAs and Compound Semiconductor Technologies Service. “The GaAs substrate market is tied closely to wireless communications and Strategy Analytics anticipates continued growth in these areas,” he adds.

“We continue to see similar growth rates for MOCVD and MBE epitaxial substrate material, and the ability to supply both types of material is solidifying IQE's position as the largest supplier," notes Asif Anwar, director in the Strategy Analytics Strategic Technologies Practice.

See related items:

SI GaAs substrate and epi markets to show 6% CAAGR unit growth through 2015

SI GaAs epi to bounce back from 7% growth in 2009 to 21% in 2010

Tags: GaAs epitaxial wafers

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