Boston, MA - April 10, 2006 -- Strategy Analytics' annual five year outlook for the Gallium Arsenide microelectronics industry, "GaAs Industry Forecast: 2005-2010" predicts demand for GaAs bulk and epitaxial substrates will grow by 30 to 40 percent over 2006 and 2007, effectively doubling by 2008.

Demand for handsets remains strong with shipments expected to grow by 15 percent year-on-year in 2006, exceeding 1 billion units by year-end 2007. The introduction of increasing complex multi-mode, multi-band architectures over 2006 and 2007 will increase the number and size of HBT and pHEMT die going into front-end modules.

"The increasing complexity of RF front-end module architectures will lead to a significant increase in the overall GaAs real estate in cellular handset front-end modules. This will result in volume demand for substrates growing by over 150 percent from 2005 to 2010," observed Asif Anwar, Director of the Strategy Analytics GaAs and Compound Semiconductor Technologies service.

"We will see fab utilization for the industry approaching 100 percent over the next two to three years," noted Stephen Entwistle, VP of the Strategic Technologies Practice at Strategy Analytics. "Substrate suppliers will need to increase material output and make any necessary investments to ensure that they can continue to meet demand. Otherwise, these suppliers risk losing market share to competitors."

Join Strategy Analytics at the CS Mantech and CS Vision meetings in Vancouver, Canada (April 24th - April 27th, 2006), where Asif Anwar will present a special market report outlining the key trends that will drive growth in the compound semiconductor industry over the next five years. See www.strategyanalytics.com for details.