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3 May 2007


GaAs device market set to grow by 76% over next five years, driven by cellular handset and Wi-Fi demand

In its annual five-year outlook for the gallium arsenide (GaAs) microelectronics industry, market research firm Strategy Analytics forecasts a CAAGR of 12%, up from $3bn last year to over $5bn by 2011. Correspondingly, the market for GaAs substrates is expected to grow to $480m over the period. VGF will be the main technology for the manufacture of bulk substrates, while the manufacture epitaxial wafer will remain evenly split between MOCVD and MBE technologies, says the research.

The report, entitled "GaAs Industry Forecast: 2006-2011", says that wireless applications will be the main driver for GaAs industry growth, with 79% of total GaAs MMIC demand in 2011. Cellular handsets will continue as the largest market for GaAs devices over the period, while Wi-Fi is expected to become the second largest market for GaAs components from 2007.

"We are seeing a variety of power amplifier (PA) approaches applied in the cellular handset front-end ranging from PA, PA-switch and PA-filter

modules," said Asif Anwar, director of the Strategy Analytics GaAs and Compound Semiconductor Technologies service. "Regardless of approach, we believe that GaAs HBTs will rule the PA with Si LDMOS continuing to lose market share."

"GaAs device demand from the Wi-Fi market will grow at a CAAGR of 28 percent through 2011," added Stephen Entwistle, VP of the Strategic Technologies Practice at Strategy Analytics. "GaAs will govern PA functions as the market moves to 802.11n. GaAs HBT PAs and GaAs pHEMT switches will also dominate Wi-Fi PA-switch modules."

GaAs device demand from non-wireless applications is also increasing: consumer (CATV and DBS), millimeter-wave and fiber-optic markets are forecast to grow at CAAGRs ranging from 6% to 11% over the next five years.

See related items:

GaAs defense market to grow at 9% to 2010 before shift to GaN

Top 10 GaAs device makers in 2005 joined by Hittite, Mitsubishi Electric and Toshiba at expense of Eudyna, Sony and NEC