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GaAs Bulk Substrate Market Sees Further Revenue Contraction in 2013 says Strategy Analytics

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News provided by

Strategy Analytics

21 Jul, 2014, 17:43 GMT

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- Challenging Times Ahead for Substrate Manufacturers: Freiberger Compound Materials (FCM), AXT, Sumitomo and Dowa

BOSTON, July 21, 2014 /PRNewswire/ -- Despite strong growth in the GaAs device market, GaAs bulk substrate manufacturers saw both production and revenues decline for the second straight year.  The recently released Strategy Analytics Advanced Semiconductor Applications (ASA) spreadsheet model and Forecast and Outlook report, Semi-Insulating GaAs Bulk Substrate Markets: 2013-2018 forecasts that new mobile architectures, competing technologies and flattening GaAs device growth rates will result in further declines in the total available market (TAM) for GaAs bulk substrates.

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Semi Insulating GaAs Substrate Production (PRNewsFoto/Strategy Analytics)

Logo - http://photos.prnewswire.com/prnh/20130207/NE56457LOGO-b

Click here for the report: http://bit.ly/1qEascm

The report concludes:

  • Demand for semi-insulating GaAs bulk substrates declined by nearly 2 percent in 2013. The volume decline and increasing price erosion caused revenues to decline by 8 percent.
  • As a result, bulk substrate demand will grow with a CAAGR of less than 1 percent through 2018.  With price erosion returning to historical levels, the slow growth of substrate production will drop revenues to $160 million in 2018.

Photo - http://photos.prnewswire.com/prnh/20140721/128915

Quotes

Eric Higham, Service Director, Advanced Semiconductor Applications commented: "There will be challenging times ahead for GaAs substrate manufacturers. "The emergence of CMOS PAs and multi-mode, multi-band GaAs PAs will both act to slow growth and reduce revenue."

Asif Anwar, Director in the Strategic Technologies Practice added: "The good news is that prior disruptions in the GaAs bulk substrate supply chain appear to have been addressed, but this means a return to historical price erosion rates that will pull revenues down."

About Strategy Analytics

Strategy Analytics, Inc. provides the competitive edge with advisory services, consulting and actionable market intelligence for emerging technology, mobile and wireless, digital consumer and automotive electronics companies.  With offices in North America, Europe and Asia, Strategy Analytics delivers insights for enterprise success.  www.StrategyAnalytics.com 

US Contact: Eric Higham, +1-617-614-0706, ehigham@strategyanalytics.com

European Contact: Asif Anwar, +44(0)-1908-423-635, aanwar@strategyanalytics.com

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