Boston, MA - February 28, 2005 -- Digital CATV services will generate higher performance requirements from infrastructure components which will be suited to GaAs semiconductor capabilities according to the latsest Strategy Analytics study, "GaAs Will Drive Digital CATV Revolution. " By 2009, GaAs-based MMICs and hybrids will account for 75 percent of the total semiconductor content in CATV infrastructure markets, with demand growing at a CAAGR of 18 percent.

In contrast, the market for silicon semiconductors will only grow at a CAAGR of 3 percent [through][up until] 2009. Strategy Analytics believes that component suppliers still biased towards silicon bipolar technology risk losing market share unless they expand their GaAs portfolio.

The North American and Asia Pacific regions will drive CATV infrastructure rollout, accounting for 89 percent of new digital CATV subscribers in 2009. This will drive demand for system amplifiers and line extenders used in CATV networks to steer content to the consumer. These system amplifiers and line extenders use a mix of silicon and GaAs-based parts.

"North America will lead the world in the move to High Definition TV (HDTV). Delivering this content via cable will require an upgraded network," states Asif Anwar, Service Director of the Strategy Analytics GaAs and Compound Semiconductor Technologies service. "Asia-Pac will be driven specifically by China, which has ambitious targets for digital TV rollout."