GaAs/GaP wafer and epitaxy market revenues to increase 50% by 2001

The worldwide market for gallium arsenide and gallium phosphide (GaAs/GaP) wafers and epitaxy is projected to grow 10% annually, from $639 million in 1996 to $1 billion in 2001, according to a report released by Mountain View, CA-based compound semiconductor market research firm Strategies Unlimited.

The report, titled GaAs/GaP Wafer and Epitaxy Report--1997, includes 1996 user and supplier survey results and five-year forecasts for six GaAs/GaP wafer and epitaxy market sectors. According to the report, the increasing use of GaAs analog RF integrated circuits (ICs) for digital wireless telephony, as well as digital ICs for high-speed computer network interconnects, should ensure double-digit growth over the next five years.

Semiconducting GaAs and GaP wafer and epitaxy sales growth is forecast to benefit most from high-brightness light-emitting diode (led) and surface-mount device (smd) led production requirements over the same five-year period. The report predicts that semi-insulating GaAs wafer and epitaxy revenues will increase at a 14% compound annual growth rate, compared with a 9% rate for semiconducting GaAs and 7% rate for semiconducting GaP. Mass market, low-cost conventional led lamps and displays are predicted to moderate the growth potential for semiconducting GaAs and GaP wafers and epitaxy.

According to the report, 1996 marks the first time shipments by U.S. semi-insulating GaAs wafer merchants equaled those of Japan. European wafer merchants also gained market share. Major GaAs suppliers to the wireless handset and digital interconnect markets in the United States reported buying large numbers of semi-insulating GaAs wafers during 1996, which contributed to the strong U.S. and European sales.

The report finds that Japanese merchant and captive semiconducting GaAs/GaP wafer suppliers made up 91% of semiconducting GaP wafer shipments and 50% of semiconducting GaAs shipments in 1996. Japanese vendors accounted for 70% of worldwide GaAs/GaP epitaxy production.

Major vendors in other regions saw strong demand for both semi-insulating and semiconducting GaAs epitaxial wafers, with some companies experiencing annual revenue gains greater than 40% from 1994 through 1996, according to the report.

More information about the report can be obtained from Strategies Unlimited, 201 San Antonio Circle, Suite 205, Mountain View, CA 94040; tel: (415) 941-3438, fax: (415) 941-5120, e-mail: www.strategies-u.com. u