In its GaAs and Compound Semiconductor Technologies service report, “GaAs Device Opportunities from the Satcom/VSAT Market: 2008-2013,” Strategy Analytics said that the very small aperture terminals, or “VSAT” market will withstand the current economic storm because of the long design cycles and pent-up demand driven by the consumer sector.

 

For both the space and ground segments of the market, GaAs, or Gallium arsenide semiconductor technology is used extensively in VSAT satellite communications systems. According to Strategy Analytics (News - Alert), GaAs device demand will grow at a compound annual average growth rate of over 4 percent from 2008 to 2013. The company states that Monolithic Microwave Integrated Circuits will dominate the volume.

 

Last October, the company released a report on the industry for processor components referred to as “GaAs” and “epitaxial” wafers. The report, “GaAs Bulk and Epitaxial Wafer Vendor Ratings and Customer Satisfaction 2007,” looks at how manufacturers in this industry are viewed by customers. The report shows that none of the GaAs epitaxial substrate suppliers were rated highly enough to be able to satisfy both the technical and commercial requirements of end users.

 

 “The VSAT industry has had to learn some tough lessons over the past decade, but the result is a model focused on value-added services which is now being augmented by growth prospects in the broadband access arena,” Asif Anwar at Strategy Analytics, said in a statement. “Advances in technology and economies of scale have combined to increase data rates while simultaneously reducing prices, opening up the opportunities for satellite communications.”

 

GaAs stands for “gallium arsenide,” a compound used as a semiconductor in integrated circuits, LEDs, and solar cells. “pitaxial refers to a process in which a layer of single-crystal silicon is deposited onto a single-crystal silicon wafer. Strategy Analytics states that the total GaAs device market exhibited year-on-year growth of 17 percent. Overall the market was worth $3.6 billion in 2007 with RFMD (News - Alert), Skyworks and TriQuint continuing to dominate the landscape and accounting for 50 percent of the total market, the research firm said.

 

As TMCnet reported, another Strategy Alliance report found that that the availability of dual-mode power amplifiers (PAs) will give a hands-up for the GaAs industry. The study, called, "GaAs Device Suppliers Offer Dual-Mode Solutions at MWC," said that the cellular market remains the key driver for the GaAs industry and power amplifiers are important hardware components of advanced mobile devices.