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GaAs device revenue reaches new heights

Although 2011 revenues hit a record $5.2 billion, growth is expected to slow down in the future
According to Strategy Analytics, a fast start to 2011 allowed the GaAs device market to withstand a slowdown toward the end of the year and post record revenue for 2011.

Continuing growth in demand for handset power amplifiers offset ongoing uncertainty in the global economy to propel the market to growth from last year’s value. The market research firm's most recent report, “GaAs Industry Forecast: 2011-2016”, reports the overall GaAs device market grew by roughly 6 percent to close 2011 with slightly more than $5.2 billion of revenue.

The report also forecasts that slowing smartphone growth and an uncertain global economy will limit future growth rates below historical averages and the market will reach slightly more than $6.1 billion in 2016.

“The GaAs market began the year with strong growth”, notes Eric Higham, Director of the Strategy Analytics GaAs and Compound Semiconductor Technologies Service (GaAs). “Toward the end of the year, slowing growth in the smartphone segment and uncertainty in the global economy became the overriding trends and the overall GaAs device market slowed substantially. The underlying trends in the GaAs market still support growth, but uncertainty in the economy is likely to limit this growth.”

Asif Anwar, Director in the Strategy Analytics Strategic Technologies Practice adds, “We remain convinced that data consumption and GaAs content in handsets will increase, but fluctuations in the global economy will put a damper on network and consumer spending.”

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