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GaAs revenues to rise thanks to power wireless base stations

Gallium arsenide revenue will approach $348 million in 2016
In response to increasing data consumption, operators are developing new wireless network architectures with smaller cells to support these consumer demands.

These “small cells”, each with lower transmit power will provide a boost to GaAs-based device revenues for wireless infrastructure applications.

The recently released Strategy Analytics GaAs and Compound Semiconductor Technologies Service (GaAs) Data Model, "Wireless Infrastructure Markets: 2011-2016", forecasts that the GaAs device revenue in wireless infrastructure will grow with a Compounded Average Annual Growth Rate of 12 percent to reach nearly $348 million in 2016.

The report also estimates that metro and pico cell growth will increase the number of wireless base station sectors from 2.3 million in 2011 to 6.6 million in 2016.

"As wireless data consumption continues to skyrocket, operators and network equipment manufacturers are responding by shrinking cell sizes to boost data rates and capacity for users", notes Eric Higham, Director of the Strategy Analytics GaAs and Compound Semiconductor Technologies Service (GaAs).

"As a consequence, we expect growth of large macro cells used in traditional network architecture to peak next year and then slowly decline. Offsetting this decline will be explosive growth in base stations with lower transmit power that we expect will begin around 2014."

Asif Anwar, Director in the Strategy Analytics Strategic Technologies Practice adds, "LDMOS will continue to be the main technology for the RF power portion of the base station, but the deployment of small cells will lead to an increase in GaAs device revenue".
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