Boston, MA - 4 August 2008 - The Strategy Analytics annual five year outlook for the Gallium Arsenide microelectronics industry, "GaAs Industry Forecast 2007-2012," predicts that year-on-year growth in the GaAs industry will slow to 9 percent in 2008. However this study maintains previous guidance on long-term growth and the market will break the $5 billion barrier in 2011. Overall, the GaAs device market will grow at a CAAGR (compound annual average growth rate) of 9 percent through 2012.

Demand from cellular handsets will continue to be the primary growth engine for the GaAs industry, with Wi-Fi the second largest market for GaAs. The corresponding market for GaAs (bulk and epitaxial) substrates will be worth $492 million in 2012, with demand for six-inch diameter material bolstered by an expected decline in four-inch material use.

"In line with previous analysis, wireless infrastructure, satellite and DBS markets will drive demand for GaAs discretes, though the overall market will show only a 1% CAAGR from 2007 to 2012," observes Asif Anwar, Director of the Strategy Analytics GaAs and Compound Semiconductor Technologies service. "Meanwhile, the market for digital GaAs ICs actually showed year-on-year growth for the first time in several years as a result of demand from the 10Gbps (gigabit per second) fiber-optic markets."

"GaAs Industry Forecast 2007-2012" is based on extensive supply-side and user-based research of the GaAs industry, and presents the Strategy Analytics analysis and forecast for the vertical GaAs market supply chain from bulk substrates through to epitaxial substrates to MMIC, discrete and digital ICs.