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Skyworks diversifies to go sky high in GaAs market

Strategy Analytics says TriQuint, RFMD and Avago were the other main players in the gallium arsenide device market in 2011

 Propelled by rapidly increasing rates of data consumption and sophisticated handsets with more GaAs content, the GaAs device market reached $5.45 billion of revenue in 2010.

The recently published Strategy Analytics report, “GaAs Device Vendor Market Share 2010: North America,” estimates that the GaAs device market grew by 35 percent since 2009.

The report addresses GaAs vendors in North America and concludes that Skyworks Solutions remains the largest GaAs device manufacturer. Skyworks increased its lead over second-place RFMD through a combination of product diversification and design wins at major handset manufacturers.

TriQuint Semiconductor is still in third place and is now less than half of a percentage point behind RFMD. Avago Technologies rounds out the top four. These companies account for nearly 60 percent of total GaAs device revenue.

“The GaAs device market had a banner year in 2010, reaching record revenue levels,” noted Eric Higham, Director of the Strategy Analytics GaAs and Compound Semiconductor Technologies Service. “The growth was driven by increasing GaAs content in handsets in response to more multi-mode and multi-band capabilities. We expect these drivers will continue, but growth is likely to be more in-line with historical averages of five to seven percent.”

Asif Anwar, Director in the Strategy Analytics Strategic Technologies Practice, added, “The 35 percent growth rate in the GaAs device market was the largest the industry experienced since the “telecom bubble” of the early 2000s. This time, growth is so broadly based that Strategy Analytics does not anticipate a repeat of the collapse in GaAs revenue, as seen after the telecom bubble burst.”

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