27 September 2012

GaAs device revenue to grow from record $5.2bn in 2011 to $6.1bn in 2016

According to the recently released Strategy Analytics GaAs and Compound Semiconductor Technologies Service (GaAs) Forecast and Outlook ‘GaAs Industry Forecast: 2011-2016’, the overall gallium arsenide device market grew by 6% to a record $5.2bn in 2011, despite a fast start to 2011 being followed by a slowdown toward the end of the year.

However, slowing growth in the smartphone handset market, plus the uncertain global economy, will limit future growth rates below historical averages, and the market will reach slightly more than $6.1bn in 2016, forecasts the report.

“The GaAs market began the year [2011] with strong growth,” notes Eric Higham, director of the Strategy Analytics GaAs and Compound Semiconductor Technologies Service (GaAs). “Toward the end of the year, slowing growth in the smartphone segment and uncertainty in the global economy became the overriding trends, and the overall GaAs device market slowed substantially. The underlying trends in the GaAs market still support growth, but uncertainty in the economy is likely to limit this growth,” he adds. 

“We remain convinced that data consumption and GaAs content in handsets [e.g. for power amplifiers] will increase, but fluctuations in the global economy will put a damper on network and consumer spending,” comments Asif Anwar, director in the Strategy Analytics Strategic Technologies Practice (STP). 

Tags: Strategy Analytics GaAs device market

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