August 22, 2012 – BUSINESS WIRE — The second half of 2011 saw slow growth for gallium arsenide (GaAs) substrates in semiconductor and related devices, as well as a shift away from GaAs as a handset switch technology, according to Eric Higham, director of the Strategy Analytics GaAs and Compound Semiconductor Technologies Service (GaAs). Consequently, demand for semi-insulating GaAs bulk substrates fell by 4%.
However, the March 2011 earthquake and tsunami in Japan disrupted the supply chain, driving up substrate pricing and overall revenue to nearly $230 million, according to Asif Anwar, director in the Strategy Analytics Strategic Technologies Practice (STP). Disruptions from the earthquake increased substrate prices in the short-term, but as they diminish, modest market growth and substrate price declines will return, Anwar said.
Strategy Analytics reports in “Semi-insulating GaAs Substrate Markets: 2011-2016” that total demand for semi-insulating (SI) GaAs bulk substrates from manufacturers such as Freiberger Compound Materials (FCM), Hitachi Cable, AXT, Sumitomo and Dowa reached slightly more than 32100 kilo square inches (ksi) in 2011.
Strategy Analytics indicates demand and revenues will return to slow growth, hitting nearly 39000 ksi and $240+ million in revenues by 2016.
The Strategy Analytics forecast segments the SI GaAs bulk substrate market by diameter, geography, growth method, application and supplier. The report also addresses trends and recent developments in these segments. Strategy Analytics, Inc. provides timely and actionable market intelligence focused on opportunities and disruptive forces in the areas of Automotive Electronics and Entertainment, Broadband Connected Home, Mobile & Wireless Intelligent Systems and Virtual Worlds. For more information, please visit http://www.strategyanalytics.com/