News Article
GaAs substrates market returning to growth
Strategy Analytics says that continuing inventory burn this year will result in an equilibrium between supply and demand for GaAs substrates in 2003.
Strategy Analytics (Luton, UK) has released a new report on the market for semi-insulating GaAs substrates. Although the report predicts a CAGR of 26% through to 2006 the equilibrium between supply and demand will not return until 2003, says the company.
According to the report "Markets for SI GaAs Substrates: 2001-2006", the excessive inventory in 2000 was built primarily on expectations of continuing demand through 2001, and fears of a 6-inch wafer shortage. The decline in demand for products manufactured using SI GaAs wafers left some users with inventory levels equivalent to 10 month’s supply and lead to a 40% decline in the merchant market for semi-insulating GaAs substrates in 2001.
"While the merchant market for GaAs substrates will show growth through 2006 of around 26%, GaAs substrate vendors will have to wait until 2003 to see the level of merchant sales that were observed in 2000," said Asif Anwar, senior analyst at Strategy Analytics.
