Compound semiconductor market product development efforts reflect diversification

BOSTON, USA: Even while the handset portion of the compound semiconductor market remains the largest revenue producer, Strategy Analytics sees that leading device suppliers are diversifying their portfolios by developing additional products for infrastructure, broadband and military applications.

The recently published Strategy Analytics GaAs and Compound Semiconductor Technologies Service (GaAs) viewpoint, “Compound Semiconductor Industry Review March 2011: Microelectronics,” captures March 2011 product, financial, contract and technology announcements for microelectronic companies such as RFMD, Skyworks Solutions, Hittite Microwave, ANADIGICS, TriQuint Semiconductor Analog Devices and NXP.

“The handset market continues to drive compound semiconductor volume, but rapid price erosion poses a challenge for suppliers,” noted Eric Higham, Director of the Strategy Analytics GaAs and Compound Semiconductor Technologies Service. “The March product announcements show activity aimed at CATV, fiber, military and test and measurement markets, as companies try to capture higher margin opportunities.”

Asif Anwar, director, Strategy Analytics Strategic Technologies Practice added, “Some companies are expanding product lines into defense and broadband, which uses new processes to diversify market penetration.”