Thursday, October 07, 2004

Gallium arsenide (GaAs) IC market worth 2.9 billion in 2004

The worldwide GaAs device market will grow from $2.7 billion in 2003 to $2.9 billion in 2004 and reach $3.7 billion in 2008. Strategy Analytics, which had previously described the digital GaAs market as dead, is forecasting a compound average growth rate of 7 percent for the 2003 to 2008 timeframe for the overall GaAs market. While volume demand for bulk and epitaxial GaAs substrates will increase, the total market for GaAs substrates, bulk and epitaxial, would only grow at a CAGR of 7 percent from $387 million in 2003 to reach $541 million in 2008.

Overall market growth for GaAs devices will continue to be dependent primarily on the wireless markets, with the cellular handset market being the primary driver. Demand from other applications, such as automotive radar, will increase, but cellular handsets will still account for at least 33 percent of the GaAs device market in 2008.


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