Consolidation and Contraction in the GaAs Epitaxial Substrate Market says Strategy Analytics

Revenue Growth in this Segment will present a Challenge for IQE, VPEC, IntelliEPI, Epiworks, Soitec and Others

Jul 21, 2014, 13:48 ET from Strategy Analytics

BOSTON, July 21, 2014 /PRNewswire/ -- While GaAs epitaxial substrate demand registered a small gain in 2013, revenues declined for the second straight year.  The recently released Strategy Analytics Advanced Semiconductor Applications (ASA) spreadsheet model and Forecast and Outlook report, "Markets for Semi-Insulating GaAs Epitaxial Substrates: 2013 - 2018", forecasts that trends in the GaAs device market will result in only slight production growth and further revenue declines.

Click here for the report:

The report concludes:

  • Demand for semi-insulating GaAs epitaxial substrates grew by slightly less than 1 percent in 2013. Despite the small growth in demand, revenue declined by 5 percent from 2012 levels.
  • Through its acquisition of RFMD's MBE manufacturing capabilities and Kopin's III-V business, IQE has become the dominant supplier, accounting for nearly 60 percent of all production.
  • Continuing price erosion will result in GaAs epitaxial substrate production growing only slightly through 2018, while revenue will decline to reach an estimated $393 million.

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Eric Higham, Service Director, Advanced Semiconductor Applications commented: "The same trends that are challenging the GaAs device manufacturers filter down to the substrate manufacturers. Increasing market share for CMOS PAs and multi-mode, multi-band GaAs PAs will both slow growth and reduce revenue at the epi substrate manufacturers."

Asif Anwar, Director in the Strategic Technologies Practice added: "IQE has become the dominant supplier in MOCVD and MBE substrates, but all the suppliers will be facing the challenge of a GaAs device market that is flattening."

About Strategy Analytics

Strategy Analytics, Inc. provides the competitive edge with advisory services, consulting and actionable market intelligence for emerging technology, mobile and wireless, digital consumer and automotive electronics companies.  With offices in North America, Europe and Asia, Strategy Analytics delivers insights for enterprise success. 

US Contact: Eric Higham, +1 617 614 0706,

European Contact: Asif Anwar, +44(0) 1908 423 635,

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SOURCE Strategy Analytics