Boston, MA - July 9, 2007 - The Strategy Analytics GaAs and Compound Semiconductor Technologies (GaAs) service, releasing its regular analysis of compound semiconductor industry news covering microelectronics, optoelectronics and materials/equipment markets, shows an industry mulling over manufacturing strategies while continuing to keep patent lawyers busy.

The compound semiconductor industry continues to see-saw between outsourcing and internal manufacturing strategies; and this was reflected in several announcements during May. In the outsourcing corner were WJ Communications and Avago Technologies, while Sirenza Microdevices and UMS were bucking the outsourcing trend with in-house investments. Meanwhile, the GaN-based LED industry continues to keep the law courts busy with patent infringement cases and licensing contracts including the Nichia-Stanley Electric deal.

"When it comes to manufacturing, no single strategy will prevail. Companies need to develop a methodical approach that takes account of fab utilization, customer base and profitability among other factors, when considering the question of outsourcing vs. internal investment," observes Asif Anwar, GaAs service Director. "It is important to recognize and maintain your existing strengths while maintaining the flexibility to consider external solutions."

Stephen Entwistle, VP of the Strategic Technologies Practice, adds, "IP is another area where it is crucial to know your strengths and weaknesses so that partnerships are two-way relationships."

The Compound Semiconductor Industry Review reports for May covering microelectronics, optoelectronics and materials/equipment market are available now at www.strategyanalytics.com