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Electronics Production | February 02, 2011

2010 GaAs device market growth exceeds 30%

Driven primarily by the rapid adoption of smartphones, Strategy Analytics research shows GaAs device market revenues of USD 4.9 billion for 2010, achieving more than 30% growth from 2009.
The recently published Strategy Analytics GaAs and Compound Semiconductor Technologies Service (GaAs) Insight, “GaAs Market Growth Exceeds 30 Percent in 2010 and is Poised for Continued Growth in 2011,” describes an accelerating gallium arsenide (GaAs) device market growth rate that resulted in an upward revision of both the growth rate and the overall revenue for the GaAs device market.

This Strategy Analytics Insight presents reported and estimated quarterly and yearly GaAs device revenues from leading suppliers RFMD, Skyworks, TriQuint, Avago Technologies, Hittite and ANADIGICS. The Strategy Analytics analysis estimates 2010 GaAs revenue grew from 24% to 52%. In addition, they report that these companies saw a strong upward trend in quarterly revenues throughout the year.

“The rapid adoption of sophisticated multi-band, multi-mode smartphones is increasing the demand for GaAs power amplifiers, which is driving the entire GaAs device market,” noted Eric Higham, Director of the Strategy Analytics GaAs and Compound Semiconductor Technologies Service.

Asif Anwar, Director in the Strategy Analytics Strategic Technologies Practice added, “As 2010 progressed, the results of the major GaAs device suppliers were so strong that we knew the market was growing faster than originally anticipated.”

Strategy Analytics has increased our estimate of the 2010 growth rate of the GaAs device market from the 15-20 percent range to 32%. We estimate that the 2010 GaAs device market revenues rose from slightly less than USD 4.3 billion to almost USD 4.9 billion. Strategy Analytics believes the adoption of smartphones and data-centric networks will also fuel faster than originally forecast growth in the GaAs market in 2011 and 2012. This Insight shows a revised forecast that indicates GaAs device market revenues will reach nearly USD 6.1 billion in 2014.

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