© ra2studio dreamstime.com Components | July 13, 2020
GaAs RF revenue projected to decline by 3.8% in 2020
RF front-end component IDM and foundry revenues will be affected under the dual influences of the COVID-19 pandemic and the Chinese government’s policy of decoupling from the U.S., driven by the ever-intensifying U.S.-China trade war that began in 2019, according to TrendForce’s latest investigations.
Lowered demand for telecommunications end-devices in 2020 is also expected to lead to a bearish market for GaAs RF front end as well. GaAs RF front end revenue is projected to reach US$5.793 billion this year, a 3.8% decline YoY. TrendForce analyst John Wang indicates that RF front end components can be classified according to their applications in various telecommunication devices. These applications include PA (power amplifiers), LNA (low noise amplifiers), and filters. Of the above applications, the GaAs compound semiconductor is particularly suited for use in PA components because of its high temperature resistance, high usable frequency range, and low noise under high frequencies. Furthermore, the number of PA components used in smartphones has increased along with the jump in cellular frequencies. For instance, 4G smartphones contain on average 5 to 7 PA parts per unit, while 5G smartphones contain 10 to 14 parts. Despite continued impact from the U.S.-China trade war, RF revenue is expected to recover in 2021 due to 5G development Given the ever-intensifying U.S.-China trade war, in which the U.S. government increased tariffs on Chinese goods imported into the U.S., the Chinese government attempted to respond by instituting a policy of decoupling from the U.S. and by importing goods and services from other countries instead. Nonetheless, China still depends on U.S.-based IDMs for PA components and RF modules due to its insufficient R&D competencies for RF front end components. Although the trade war has lowered U.S. IDMs’ revenues earned from Chinese clients, the fact that Chinese smartphone manufacturers must import some products from these IDMs means U.S. IDMs were able to maintain their bottom lines to a certain extent. In 1Q20, Qorvo’s revenue grew by 15.7% YoY to reach $788 million, while Skyworks’ revenue decreased by 5.5% YoY to reach $766 million. The overall GaAs foundry revenue was likewise disrupted by the U.S.-China trade war in 1H19. In 2H19, however, under the influence of China’s decoupling from U.S. goods and services, Chinese IC design companies decided to directly purchase from WIN Semiconductor Corp and AWSC. In 1Q20, WIN’s revenue grew by 67.8% YoY to reach $201 million, while AWSC’s revenue also increased by 162.6% to reach $27 million. On the other hand, GCS’ performance during the same period was relatively mediocre, registering a $12 million revenue, a 2.8% decrease YoY, in 1Q20, since operations at its primary fab, located in California, were affected by the pandemic. TrendForce expects revenues of major RF front end IDMs to potentially make a rebound from rock bottom in 2021, as the global build-out of 5G base stations accelerates, and 5G handsets account for an increasing share of smartphone manufacturers’ yearly production. At the same time, some foundries are also likely to benefit from these circumstances, with the overall GaAs foundry revenue making an expected rebound as well.
The UK’s biggest wafer fab wants to become even bigger Newport Wafer Fab, Infineon’s former manufacturing fab in South Wales, is looking to raise GBP 50 million to expand its production capacity amidst global semiconductor shortage.
TE Connectivity has sold Axicom to RCP TE Connectivity has divested its Axicom high voltage products business division to RCP Group, an independent investment firm based in Munich.
Sponsored content by Shenzen Kinwong ElectronicThe development trend of printed circuit board products and Kinwong's solution With the rapid development of electronic technology in recent years, printed circuit board (PCB) products are pursuing higher heat dissipation capabilities, with high voltage and high current characteristics, and are developing towards high-density interconnection technology (HDI).
John Ternus to take over as Apple's hardware engineering chief Apple's Dan Riccio will transition to a new role focusing on a new project and reporting to CEO Tim Cook. John Ternus will now lead Apple’s Hardware Engineering organization as a member of the executive team.
HC Solutions is now in the hands of S&T S&T AG has acquired 100% of the Linz-based company HC Solutions GmbH (HCS) through its wholly-owned subsidiary Kontron Technologies GmbH (KTEC).
Cadence to acquire NUMECA Cadence Design Systems has entered into a definitive agreement to acquire NUMECA International, a company focused on computational fluid dynamics (CFD), mesh generation, multi-physics simulation and optimization.
Tech Etch installs Aqua Rose cleaner and tester Tech Etch, a US-based provider of custom flex and rigid-flex circuits, EMI/RFI shielding solutions, and precision etch & form, has purchased an Aqua ROSE Batch Cleaner/Ionic Contamination Tester.
GlobalWafers increases its offer for Siltronic GlobalWafers says it has increased its all-cash takeover offer of Siltronic, by its subsidiary GlobalWafers GmbH, to EUR 140 per Siltronic share.
NI and Konrad ink agreement to accelerate autonomous vehicle test NI and Konrad Technologies (KT) have entered into a strategic agreement to develop test systems and solutions for autonomous driving software and hardware validation.
Intel expands in Poland The US chipmaker is preparing to expand its operations in the Polish city of Gdańsk. The company will be constructing its sixth building at its campus in the city.
Murata completes new Okayama production building The Japanese company’s production subsidiary, Okayama Murata Manufacturing, initiated an expansion of its operations in Setouchi City with a new production building in December 2019. Now the building stands complete.
Osram signs supply and commercial agreement with LeddarTech ADAS and AD sensing specialist, LeddarTech, and automotive lighting and laser systems supplier Osram, have entered into a long-term agreement.
ITW to acquire MTS Test & Simulation business From Amphenol Illinois Tool Works Inc., a global multi-industrial manufacturing company, and the provider interconnect, antenna and sensor solutions, Amphenol Corporation, have entered into an agreement under which ITW will acquire MTS Systems Corporation’s Test & Simulation business, following the closing of Amphenol’s acquisition of MTS.
Tobey Gonnerman named Fusion Worldwide's new President The global sourcing distributor announces that Tobey Gonnerman has been appointed as the company’s new President.
Solving the Cable TV Infrastructure Downstream Transmitter Challenge Driven by demand for faster internet connectivity, the cable TV industry has developed new network architectures for the delivery of multigigabit services to subscribers. This fiber deep approach, using a remote PHY device (RPD), moves critical hardware closer to the users by using digital fiber.
Boyd expands its footprint with new facility in Mexico Thermal management and engineered material solutions specialist Boyd Corporation, has expanded its presence in North America with a newly built facility strategically located in Juarez, Mexico.
Farnell becomes a global distribution partner NI the distributor of electronic components, products and solutions has been appointed as an NI Authorized Distributor, expanding its product portfolio to include NI software-connected test and measurement solutions for customers of all sizes.
Foxconn and Winbond invest in chipmaker Kneron Foxconn and Winbond joins companies such as Qualcomm, Horizons, Sequoia and Weltrend as high profile investors in Kneron
EV Group sets up customer training facility at HQ EV Group (EVG) has established the EVG Academy, a training facility for customers that provides technical training on all classes of the company's equipment as well as on its CIM Framework software platform in an optimised environment.
Denso team up with Aeva to develop sensing and perception systems Mobility supplier Denso says that it is partnering with U.S. LiDAR and perception systems company, Aeva, to develop next-generation sensing and perception systems.
Fire hit Taiwanese MLCC manufacturer in China On January 13 a fire broke out at Taiwanese passive component maker Walsin Technology’s Dongguan, China site.
Thin Film Products joins SERMA Microelectronics SERMA Microelectronics, a subsidiary of the French electronics specialist SERMA Group, has finalised the purchase of TFP (Thin Film Products), a French manufacturer of thin-film microwave circuits for space, military and civil applications.
New Korean Zestron Technical Center opens for customers The provider of high precision cleaning products has expanded its operations by opening a new Technical Center, located in Anyang, Korea.
A2 Global Electronics names new executives Electronic component distribution and supply chain service provider, A2 Global Electronics, has appointed Anthony Andriano as its new Chief Financial Officer and promoted Jesper Romell as its new President.
ROHM expands production capacity of SiC power devices ROHM has recently held an opening ceremony announcing the completion of a new building at ROHM Apollo's Chikugo plant, which the company started building back in February 2019, to enhance the production capacity of SiC power devices.
Elmos acquires Online Engineering GmbH Elmos is strengthening its in-house competencies in software engineering via the acquisition of Dortmund based engineering service provider Online Engineering.Load more news