Boston, MA - July 26, 2005 -- Continued growth in handset sales, coupled with increasing GaAs IC content in handsets, will propel growth in the semi-insulating bulk GaAs wafer market by 43 percent over the next five years, according to "Markets for SI GaAs Substrates: 2004-2009," from Strategy Analytics.

Multi-mode and multi-band handsets are leading to increased use of GaAs ICs for the power amplifier and RF switch functions in handsets, which in turn is driving wafer demand to new levels--particularly at IC vendors such as Skyworks and RF Micro Devices. According to this report, wafer vendors stand to benefit from increased material demand in a market that is expected to grow from 14 million square inches (msi) to 20 msi by 2009.

Strategy Analytics warns, however, that vendors looking for an easy ride may be disappointed. Asif Anwar, Director, Strategy Analytics GaAs and Compound Semiconductor Technologies service, comments, "There are many dynamics operating in the GaAs Wafer supply industry. Certainly, overall wafer demand due to the cellular industry is increasing, but changing customer purchasing patterns means that it is easy to miss the big picture of future wafer diameter and technology trends." Emphasizing this point, the report highlights several major customers that have expanded capacity, as well as those that have recently closed. "It is more important than ever for wafer vendors, such as Sumitomo Electric, Freiberger Compound Materials and Hitachi Cable, to be aware not only of their own markets, but those of their customers too."

Also included is extensive analysis of regional demand trends, vendor market shares, wafer growth techniques, pricing and forecasts by wafer diameter until 2009.