The latest Strategy Analytics analysis on the semi-insulating (SI) GaAs bulk substrates market, “Markets for SI GaAs Substrates: 2007-2012,” predicts that merchant demand for four-inch material will decline by over 20% by 2009, with demand shifting to six-inch material. Six-inch substrates will account for 76% of total market revenues in 2012, up from 63% in 2007.
Strategy Analytics estimates that demand for SI GaAs bulk substrates increased by 5% year-on-year in 2007 with demand for GaAs devices driven primarily by cellular handset and other wireless markets. The overall SI GaAs substrate market will grow at a CAAGR (compound annual average growth rate) of 5%, with merchant demand accounting for 95% by 2012.
“We are forecasting that year-on-year substrate demand will grow 7% in 2008 and 9% in 2009, but demand for bulk substrates will vary by growth technology,” predicts Asif Anwar, Director of the GaAs service at Strategy Analytics. “In addition to the move to six-inch diameters, overall demand for SI GaAs bulk substrates is driven by HBT (Heterojunction Bipolar Transistor) device production, which will ensure dominance of VGF (Vertical Gradient Freeze) and VB (Vertical Bridgman) substrates. This also means that demand for LEC (Liquid Encapsulation Czochralski) bulk substrates will decline for the period through 2012.”
“Industry consolidation over the past 12 to 18 months will mean that customers for bulk substrates will have greater buying power,” observes Stephen Entwistle, VP of the Strategic Technologies Practice. “It will be even more important for the bulk substrate suppliers to develop and maintain strategic relationships major users such as IQE, Kopin, RFMD, Skyworks and TriQuint.”
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