Wireless and Fiber Optic Networks to Boost Compound Semiconductor Sales To $10 Billion
Compound Semiconductor Magazine Predicts Communications Applications Will Grow 33 - 40% Annually
Beverly, MA. Sales of compound semiconductor devices will reach the $10 billion mark in 2000, predicts an article in the December issue of Compound Semiconductor Magazine. "Shipments of compound semiconductor devices increased nearly 4x in this decade, and the outlook for the years ahead is extremely good," says Managing Editor Marie Meyer. "If the current growth rates can be sustained -- and there are no indications to the contrary -- shipments of compound semiconductor devices should reach the $20 billion level in less than 5 years."
Compound semiconductors are the second most common type of semiconductor, after silicon. The most common example of a compound semiconductor device is the light emitting diode (LED), which accounts for approximately 40% of all sales. However, the highest growth rates are found in more sophisticated devices that are used as components in communications systems. Examples include GaAs power amplifiers for mobile phones, and semiconductor laser diodes and high-speed ICs used in fiber optic networks.
In many cases, compound semiconductors serve as the key enabling technology for communications systems, and demand for these devices is soaring. The total market value for compound semiconductors used in communications applications is estimated to be more than $3.5 billion, with current annual growth rates in excess of 33%.
As a result, virtually all of the companies that are active in this field have seen huge increases in their valuations. Since the first of the year, shares in three manufacturers of telecom laser diodes -- JDS Uniphase, SDL Inc., and Ortel -- have risen more than 600%. "We believe the growth rates in laser diodes may be even higher with the aggressive deployment of wavelength division multiplexing (WDM) networks and a robust SONET market," says Jim Jungjohann, a telecom analyst at CIBC World Markets.
Share prices for several manufacturers of GaAs ICs have also increased dramatically. RF Micro Devices is up more than 1800% over the past two years. Shares in Vitesse, TriQuint, and Alpha Industries have risen more than 300% in that same period. And Conexant shares have risen more than 500% since the company s IPO in January. "With the strong growth in mobile telephony and broadband wireless access opportunities, demand is accelerating for high- speed, high bandwidth components. We expect that technology advances will keep GaAs, SiC and other advanced materials in the forefront of the bandwidth revolution," said Dale Pfau, Managing Director at CIBC World Markets. "We could see growth over the next several years even stronger than we have over the past two or three."
Compound Semiconductor Magazine, with sponsorship from CIBC World Markets, is hosting a conference about the applications of compound semiconductors in the communications industry. The Key Conference on Compound Semiconductors in Communications will be held in Key West, Florida March 13-14, 2000 at the Wyndham Casa Marina Hotel. Leading industry analysts and representatives of many of the top compound semiconductor fabs will present their views on the future of this industry. Speakers from Lucent, Nortel Networks, TRW, JDS Uniphase, Anadigics, Gore Photonics, Cree Research, Rockwell Science Center, Strategies Unlimited, OIDA, Strategies Analytics and many others are scheduled to appear.
Download the full text of the article referenced above in PDF Format. More information regarding the Key Conference mentioned above can be found at http://www.keyconference.com/.
Contact:
Marie Meyer of Compound Semiconductor Magazine,
Tel: 978-927-9994; email: mmeyer@compsem.com
Tel: 978-927-9994; email: mmeyer@compsem.com
E-mail: mmeyer@compsem.com
Web site: http://www.keyconference.com/
