Wireless Market to Drive GaAs Microelectronics Growth Sep 10, 2004

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Strategy Analytics, a global research and consulting company, is forecasting a compound average growth rate of 7 percent for Gallium Arsenide (GaAs) microelectronics over the 2003-2008 timeframe.

The firm reports that the worldwide GaAs device market will grow from U.S. $2.7 billion in 2003 to $3.7 billion in 2008. While volume demand for bulk and epitaxial GaAs substrates will increase, the total market for GaAs substrates (bulk and epitaxial) will only grow at a CAAGR of 7 percent from $387 million in 2003 to reach $541 million in 2008.

"Overall market growth for GaAs devices will continue to be dependent primarily on the wireless markets, with the cellular handset market being the primary driver," noted Asif Anwar, director, GaAs Service. "The cellular market represented over 41 percent of the total demand for GaAs devices in 2003. Demand from other applications, such as automotive RADAR, will increase, but cellular handsets will still account for at least 33 percent of the GaAs device market in 2008."

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