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Driven by demand for HBT and pHEMT devices, the semi-insulating GaAs epitaxial substrate market will grow steadily at a compound annual average growth rate of (CAAGR) 8% through 2011 to $467m, forecasts Strategy Analytics in its report 'SI GaAs Epitaxial Substrates Markets 2006-2011'.

In terms of surface area, the SI GaAs epi substrate market (merchant and captive) grew by 30% from 12,525ksi in 2005 to 16278ksi in 2006, and will grow at a CAAGR of 10% through 2011.

In terms of revenue, North America will continue to be the largest market. However, the Asia-Pacific epitaxial market, specifically Taiwan, will become second largest, benefiting from consolidation in GaAs manufacturing and integrated device manufacturer (IDM) facility upgrades, reckons the market research firm. Also, there will be a boost in six-inch wafer demand, while the market for four-inch material will fall sharply, by 24% over the next two years.

“As predicted last year, we have seen some significant supply chain changes,” notes Asif Anwar, director of Strategy Analytics’ GaAs service. “Our analysis shows that the acquisition of Emcore’s epitaxial substrate business, in conjunction with strong growth for its own MBE substrates, placed IQE within 1 percentage point of Kopin in 2006, while the MBE Technology acquisition should push the company into the number-one spot in 2007.”

“GaAs will remain the mainstream solution for cellular handsets, which will be reflected in the continued demand for epitaxial substrates,” predicts Stephen Entwistle, VP Strategic Technologies. “However, we have tempered our demand forecast to reflect die size reductions and the increasing integration capabilities of GaAs processes,” he adds. “Nevertheless revenue growth will remain strong, as increasing raw material costs keep wafer price erosion at a minimum.”

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Search: GaAs SI GaAs epi HBT pHEMT

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