The report sees service providers, after a considerable period of stagnation, once again purchasing optical capacity to meet their growing traffic needs. OC-48 and OC-192 links will be at the center of the renewed growth, with the deployment of high-capacity routers also serving to stimulate OC-768 purchases. While GaAs transimpedance and post amplifiers will see increased competition from alternatives (mainly SiGe technology), crucial laser-driver functionality will, at higher speeds, remain largely the domain of GaAs.
Despite its positive outlook, the research firm warns that industry consolidation will be required to counteract the effects of oversupply and intense pricing competition. “The market for fiber-optic devices is there and it is growing,” says Asif Anwar, director of Strategy Analytics’ GaAs & Compound Semiconductor Technologies Service. “However, the IC industry is in a structurally poor state. For profitability to return, what’s needed is not only growing demand, but some consolidation and stability among IC suppliers.”
For more information on the report, “Fiber-optic Analog IC Market and Technology Dynamics,” visit www.strategyanalytics.com.