Boston, MA - July 27, 2005 -- Strategy Analytics, the global research and consulting company, has released a new study on the semi-insulating GaAs bulk substrate market, "Markets for SI GaAs Substrates: 2004-2009," concluding that three companies account for the preponderance of GaAs wafer supplies to the GaAs microelectronics industry.

In rank order, Sumitomo Electric Industries (SEI), Freiberger Compound Materials (FCM) and Hitachi Cable accounted for over 90 percent of wafers shipped into the merchant market during 2004. The only other significant merchant supplier, AXT, accounted for just 6 percent of wafers shipped into the merchant market in 2004, and has continued to struggle against its peers despite once leading the supply of VGF substrates to the market.

Over the years, vendors have exited the market or concentrated on other substrates markets, reducing the number of players to a small handful. Market share dynamics have been directed by end-user trends toward larger diameter wafers and epi-based GaAs device production favoring vertically grown (VGF/VB) substrates.

"While FCM and SEI lead the market supply of semi-insulating GaAs bulk wafers, the market is far from being a two-horse race just yet. Hitachi Cable and AXT still have the potential to upset the two market leaders," observed Asif Anwar, Director, GaAs and Compound Semiconductor Technologies at Strategy Analytics.

The report includes extensive analysis of regional demand trends, vendor market shares, wafer growth techniques, pricing and forecasts by wafer diameter until 2009.