LONDON The market for Gallium Arsenide devices grew by 9 percent in 2008, according to market research group Strategy Analytics, with early estimates showing that RFMD, Skyworks and TriQuint further consolidated their position in the sector.
Strategy Analytics says the three accounted for up to 59 percent of total GaAs industry revenues last year.
However, according to Asif Anwar at Strategy Analytics , the GaAs sector hit a wall in the fourth quarter of last year and predicts 2009 will see industry revenues decline by five to six percent.
Anwar added 2009 "presents an opportunity for the market leaders to squeeze out their competition, provided they can successfully leverage existing relationships while continuing to tap into adjacent markets and emerging opportunities."
Merchant demand for GaAs devices continues to be centered upon MMIC-based products targeted at the wireless sector and this drove GaAs device industry revenues up to $3.9 billion in 2008.
Strategy Analytics suggests that while TriQuint and Skyworks closed the gap, RFMD maintained its standing as the world's largest supplier of GaAs-based RF components, and that, collectively, the top ten GaAs device manufacturers--including Avago Technologies, M/A-COM and Mitsubishi Electric--accounted for up to 82 percent of the overall market.