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27 July 2009


SI GaAs substrate market to shrink just 1% in 2009

The strong inventory corrections in fourth-quarter 2008 and first-quarter 2009 will prevent the severe sharp decline seen in the semi-insulating (SI) GaAs bulk substrate market in the 2001 downturn, reckons market research firm Strategy Analytics in its annual forecast ‘Semi-insulating GaAs Substrate Markets: 2008-2012’. However, the year-on-year growth of 14% from 2007 to 2008 will be followed by the market shrinking 1% in 2009.

An examination of supply chain dynamics, coupled with analysis of end-demand drivers for SI GaAs bulk substrates, provides a demand scenario that suggests a compound annual average growth rate (CAAGR) over 2008 to 2013 of 5%. Demand should return in 2010, then grow steadily through 2013 to $174m.

“The slowdown in key market segments has not resulted in any significant paradigm shifts with respect to the use of GaAs technology in mainstream markets such as cellular handsets and personal computers,” notes Asif Anwar at Strategy Analytics. “Indeed, usage trends point to increased GaAs device demand from these and other markets, which will result in sustained demand for substrate material,” he adds.

In 2008, Freiberger Compound Materials GmbH of Freiberg, Germany remained the leading merchant supplier of SI GaAs bulk substrates. However, AXT Inc of Fremont, CA, USA was the market share winner, showing strong growth to grab the number three position from Japan's Hitachi Cable.

See related item:

Fab upgrades shift GaAs substrate demand from 4-inch to 6-inch

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