8 February 2012

GaAs device revenue grows 6% in 2011, returning to historical averages

After a banner year in 2010 (hitting record revenue of nearly $5bn) followed by a fast start to 2011, the gallium arsenide (GaAs) device revenue growth rate slowed, maintaining the historical average of 6% for full-year 2011, according to a report from the Strategy Analytics GaAs and Compound Semiconductor Technologies Service (GaAs).

The Insight report ‘2011 GaAs Device Revenue Falters after Strong Start’ explores GaAs device revenue growth trends in handsets and smartphones, as well as revenue performance of leading substrate and device makers, such as IQE, VPEC, Kopin, RFMD, Skyworks, TriQuint Semiconductor, Avago Technologies and WIN Semiconductors. While growth drivers are still present, the rates are likely to continue to flatten in 2012, forecasts Strategy Analytics.

“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,” notes 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,” he adds.

“There were revenue declines in the second half of 2011 at GaAs substrate manufacturers,” says Asif Anwar, director, Strategy Analytics Strategic Technologies Practice. “Strategy Analytics will continue to monitor these trends throughout 2012, in order to see their effect on the GaAs supply chain.”

The insight summarizes revenue performance of a representative set of GaAs device manufacturers for 2010 and 2011. It also discusses trends and drivers for the overall GaAs device industry and forecasts trouble spots and directions to be monitored through 2012.

See related items:

GaAs device market grows 32% from $4.3bn to $4.9bn in 2010

Tags: GaAs device market

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