A Boston-based research firm today is reporting that the market for semiconductors made of the elements gallium and arsenic – known as “GaAs” – saw 17 percent growth in 2007.

 

According to Strategy Analytics (News - Alert), the figure marks a stronger showing than the mainstream semiconductor market. Overall, the GaAs chip market was worth $3.6 bllion, led by three companies, the analysts say: RFMD (News - Alert), Skyworks and TriQuint.

 

The firm’s vice president of the strategic technologies practice, Stephen Enstwistle, said cell phone demand spurred the growth, as it appeared to account for 65 percent of 2007’s merchant market.

 

“GaAs-based RF modules accounted for nearly 90 percent of the cellular handset market in 2007; and these modules will continue to be key to future mobile handset designs,” Enstwistle said.

 

Gallium arsenide is seen as an important semiconductor, experts say, and is used to make microwave frequency integrated circuits, infrared light-emitting diodes, laser diodes and solar cells.

 

Industry insiders say that GaAs could have some electronic properties that are better than silicon, the traditional ingredient of semiconductors.

 

For example, they say, it has higher saturated electron velocity and electron mobility, which allow transistors made from it to function at frequencies in excess of 250 GHz.

 

Also, experts say, GaAs devices generate less noise than silicon devices when operated at high frequencies. They can also be operated at higher power levels than the equivalent silicon device because they have higher breakdown voltages.

 

Strategy Analytics says that seven out of the top 10 ranked GaAs device manufacturers are based in the United States, including Avago Technology and M/A-COM. Mitsubishi Electric (News - Alert) remained the largest Japanese supplier of GaAs devices, the firm reports, joined by Eudyna Devices in the top 10. Win Semiconductor ranked tenth in the Strategy Analytics 2007 GaAs device manufacturer rankings, the firm says.

 

According to Asif Anwar, director of the “GaAs and Compound Semiconductors Technologies Program” at Strategy Analytics, the overall metrics for GaAs market growth remain strong and the industry remains on track.

 

“While macroeconomic uncertainties will affect the primary end markets for diminishing year-on-year GaAs growth in 2008, the market leaders will strengthen their leadership as a result of the industry consolidation that has taken place over the past 12 to 18 months,” Anwar said.