Strategy Analytics reported the GaAs epitaxial substrate demand registered a small gain in 2013, but the revenues declined for the second straight year.
The other findings reported by Strategy Analytics include:
Demand for semi-insulating GaAs epitaxial substrates grew by slightly less than 1 percent in 2013. Despite the small growth in demand, revenue declined by 5 percent from 2012 levels.
Through its acquisition of RFMD’s MBE manufacturing capabilities and Kopin’s III-V business, IQE has become the dominant supplier, accounting for nearly 60 percent of all production.
Continuing price erosion will result in GaAs epitaxial substrate production growing only slightly through 2018, while revenue will decline to reach an estimated $393 million.
Eric Higham, Service Director, Advanced Semiconductor Applications commented: “The same trends that are challenging the GaAs device manufacturers filter down to the substrate manufacturers. Increasing market share for CMOS PAs and multi-mode, multi-band GaAs PAs will both slow growth and reduce revenue at the epi substrate manufacturers.”
Asif Anwar, Director in the Strategic Technologies Practice added: “IQE has become the dominant supplier in MOCVD and MBE substrates, but all the suppliers will be facing the challenge of a GaAs device market that is flattening.”