Analyst: GaAs device revenue grows amid CMOS threat

Strategy Analytics has revealed that GaAs device revenue registered a slight gain in 4Q12. The market research firm attributed the increase in the GaAs device market to the proliferating handset sales, particularly smartphones.

As data consumption steadily climbs, handsets will remain the primary driver for GaAs device growth. In the short-term, revenue in the GaAs device market is expected to exceed the historical average. In the longer term, the Strategy Analytics pointed out that recent developments in CMOS multi-mode, multi-band handset PAs from Qualcomm and others will pose a significant threat to the GaAs device market.

"Smartphones continue to grow faster than the overall handset market. This growth, coupled with more bands and increased GaAs device content remains the single biggest driver for revenue growth in the GaAs device market," noted Eric Higham, director at the Strategy Analytics. "In the short-term, we anticipate this combination of factors will drive GaAs device revenue growth above historical averages."

Asif Anwar, director, Strategy Analytics, added: "Strong growth in the last quarter of 2012 provides a good starting point for the GaAs industry in 2013. However, recent announcements about CMOS multi-mode, multi-band PAs and envelope tracking will threaten the GaAs device market and these developments will be monitored closely."