GaAs ICs grew 1% in 2011, compared to 36% growth in 2010, as a result of weak demand in wireless – cell phones and Wi-Fi, according to report of The Information Network’s, entitled The GaAs IC Market.
The Information Network president Dr. Robert Castellano said every cell phone contains Power Amplifiers (PA), which enables the handset to transmit voice and data back to the base station tower to route a call to another phone number or Internet address.
"PAs, the most critical radio frequency component in the phone are currently dominated by circuits made with Gallium Arsenide (GaAs)," said Castellano.
This is said to be the smallest growth after a 1.7% gain in 2009.
The research firm expects the wireless/Wi-Fi market to recover in 2012 and the GaAs IC market to register an 8% gain.
According to The Information Networks, 3G handsets often contain up to five PAs, and GaAs makes up 100% of the market, which is close to $5bn.
It avers that the number of PAs per handset is growing, owing to complex 3G systems, global roaming support, and data roaming support.
Also, pricing for PA’s has increased from $0.80 per handset to $2.90 currently and is projected to increase to greater than $3.50 once Long Term Evolution (LTE) and Advanced Wireless Services (AWS) spectrum emerge in advanced handsets in the marketplace.
