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GaAs Industry 2001 vs. 2009
What's different this time?
Boston, MA - 16 April 2009 - In the report "GaAs Industry Downturns 2001 vs. 2009," the Strategy Analytics GaAs and Compound Technologies (GaAs) service reiterated previous projections of a 5% - 6% drop in GaAs industry revenues for 2009, and explains why the current downturn will not be as extreme for the GaAs industry as in 2001.
The GaAs industry hit a wall in the last quarter of 2008. The effects of a global economic slowdown finally caught up with the handset market-and other end markets-in which GaAs technology is used. However, Strategy Analytics believes that the expanding demand for bandwidth coupled with better managed inventory corrections will save the industry from seeing the precipitous 25% drop suffered in 2001.
"As we move into the second quarter, the GaAs industry will see an uptick in orders although admittedly, in some cases, it may simply be a restocking exercise," observes Asif Anwar at Strategy Analytics. "However, the pockets of growth that we are seeing support the Strategy Analytics view that excess inventory in the GaAs industry supply chain is not a roadblock to recovery this time."
Mr. Anwar concluded, "Assuming no other surprises from broader global macroeconomics, we should expect to see the market return to growth in the second half of 2009 moving into 2010."
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Asif Anwar |
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