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2011 GaAs Bulk Substrate Revenues Increase despite Declining Demand
Substrate Demand will resume Growth in 2012
Boston, MA - August 20, 2012 - Slow growth in the gallium arsenide (GaAs) device market in 2011, coupled with a shift away from GaAs technology for handset switches dropped demand for semi-insulating GaAs bulk substrates by 4 percent. However, the 2011 earthquake and tsunami in Japan disrupted the supply chain resulting in increased substrate pricing and higher overall revenue. The recently released Strategy Analytics GaAs and Compound Semiconductor Technologies Service (GaAs) spreadsheet model and Forecast and Outlook report, "Semi-insulating GaAs Substrate Markets: 2011-2016", forecasts that total demand for semi-insulating (SI) GaAs bulk substrates from manufacturers such as Freiberger Compound Materials (FCM), Hitachi Cable, AXT, Sumitomo and Dowa reached slightly more than 32100 kilo square inches (ksi) in 2011. The report estimates that this demand resulted in nearly $230 million in revenues in 2011. The forecast indicates demand and revenues will return to slow growth with demand reaching nearly 39000 ksi and revenues growing to slightly more than $240 million by 2016.
"Growth in the GaAs device market slowed noticeably in the second half of 2011and this slowdown was one of several factors causing GaAs bulk substrate demand to decline", noted Eric Higham, Director of the Strategy Analytics GaAs and Compound Semiconductor Technologies Service (GaAs). "The other notable trend that has slowed growth in GaAs substrate demand is the rapid conversion of handset switches to technologies other than GaAs."
Asif Anwar, Director in the Strategy Analytics Strategic Technologies Practice (STP) added, "The earthquake and tsunami in Japan disrupted the entire GaAs bulk substrate supply chain. These disruptions have increased substrate prices in the short-term but as they diminish, we expect modest market growth and substrate price declines will return."
The Strategy Analytics forecast segments the SI GaAs bulk substrate market by diameter, geography, growth method, application and supplier. The report also addresses trends and recent developments in these segments.
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