News

4 March 2009

 

Industry should not lose focus on innovation in 2009, warns Strategy Analytics

The compound semiconductor industry is faced with tough choices in order to ensure at least some form of viability going into a very challenging 2009, says Strategy Analytics’ GaAs and Compound Semiconductor Technologies (GaAs) service in its November 2008 - January 2009 analysis of microelectronics, optoelectronics and materials/equipment markets.

As the industry moved into 2009 the early emphasis has been on workforce reductions and the streamlining of operations and manufacturing costs, and Strategy Analytics believes that this emphasis will continue through the second quarter. Industry consolidation will also feature through the year, with Sumitomo Electric and Fujitsu coming to an agreement related to Eudyna Devices, while Avanex and Bookham recently announced a merger of their operations.

“Early financial analysis shows the consistent trend of sequential drops in revenue for the final quarter of 2008 coupled with further downward adjustments in the first quarter of 2009,” observes Asif Anwar of Strategy Analytics. “While streamlining operations and maximizing efficiency will be important, the industry should not lose its focus on innovation in 2009 if it is to capitalize on the emerging opportunities from next-generation devices and networks,” he warns.

See related items:

Bookham and Avanex agree to merge

Fujitsu to sell stake in Eudyna to JV partner Sumitomo Electric

Visit: www.strategyanalytics.com