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Consolidation and Contraction in the GaAs Epitaxial Substrate Market

Revenue Growth in this Segment will present a Challenge for IQE, VPEC, IntelliEPI, Epiworks, Soitec and Others

Boston, MA - July 21, 2014 – While GaAs epitaxial substrate demand registered a small gain in 2013, revenues declined for the second straight year.  The recently released Strategy Analytics Advanced Semiconductor Applications (ASA) spreadsheet model and Forecast and Outlook report, “Markets for Semi-Insulating GaAs Epitaxial Substrates: 2013 - 2018”, forecasts that trends in the GaAs device market will result in only slight production growth and further revenue declines.

Click here for the report: http://bit.ly/UbgXsm

The report concludes:
  • Demand for semi-insulating GaAs epitaxial substrates grew by slightly less than 1 percent in 2013. Despite the small growth in demand, revenue declined by 5 percent from 2012 levels.
  • Through its acquisition of RFMD’s MBE manufacturing capabilities and Kopin’s III-V business, IQE has become the dominant supplier, accounting for nearly 60 percent of all production.
  • Continuing price erosion will result in GaAs epitaxial substrate production growing only slightly through 2018, while revenue will decline to reach an estimated $393 million.

Quotes

Eric Higham, Service Director, Advanced Semiconductor Applications commented: “The same trends that are challenging the GaAs device manufacturers filter down to the substrate manufacturers. Increasing market share for CMOS PAs and multi-mode, multi-band GaAs PAs will both slow growth and reduce revenue at the epi substrate manufacturers.”

Asif Anwar, Director in the Strategic Technologies Practice added: “IQE has become the dominant supplier in MOCVD and MBE substrates, but all the suppliers will be facing the challenge of a GaAs device market that is flattening.”


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