News Article
GaAs epiwafer revenues on track for recovery
A new report by Strategy Analytics says that the market for GaAs epiwafers should return to the levels seen in 2000 by the end of 2003.
A new report by Strategy Analytics says the market for semi-insulating epitaxial GaAs substrates will begin to recover this year, with sales volumes comparable to those achieved in 2000 being reported by the end of 2003. According to the report "Markets for SI GaAs Epitaxial Substrates: 2001-2006", the market contracted by 27% in 2001 due to a general downturn in the economy and high inventory levels in end-user facilities.
For the five-year period 2001 to 2006, Strategy Analytics expects the market to show a compound annual average growth rate (CAAGR) of 28%. However, pricing pressure from end-users will remain intense. Although volumes will increase, the epitaxial wafer market will not return to the $430 million revenue levels generated in 2000 until 2005 or 2006.
"2001 saw prices for six-inch wafers drop to below $1000," noted Asif Anwar, senior analyst at Strategy Analytics. "As long as there are no nasty hikes in bulk substrate and raw material costs, users will expect prices for 6 inch epiwafers to drop below $700 in three to four years."
