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March 28, 2012

Revenue growth of compound semiconductor industry slows: Report

The sales of bandwidth consumption and mobile handset are still increasing, according to Strategy Analytics

By CBR Staff Writer

If semiconductor manufacturers Skyworks, RFMD and Freescale earning estimates are anything to go by, then they all point to declining revenues in this industry for the year 2011.

This is notwithstanding the fact that the sales of bandwidth consumption and mobile handset are still increasing, according to the Strategy Analytics views captured in ‘Compound Semiconductor Industry Review January 2012: Microelectronics.’

This report also captures announcements for others semiconductor industry players including Fujitsu, ANADIGICS, Agilent, Hittite Microwave, TriQuint Semiconductor, Avago, Soitec, Analog Devices and Microsemi.

Strategy Analytics GaAs and Compound Semiconductor Technologies Service director Eric Higham said even though we are seeing revenue growth rates slow from some of the larger compound semiconductor manufacturers, this should not set off too many warning bells.

"The need for bandwidth, especially due to ever-increasing sales of mobile handsets, will continue to power revenue growth in the compound semiconductor industry." adds Hingham.

According to Strategy Analytics Strategic Technologies Practice director Asif Anwar, "Revenue is typically the highest in the third quarter as, manufacturers increase production in advance of the holiday season. Despite the declines at the end of the year, Strategy Analytics expects 2012 revenue growth for the industry to be close to the historical average of 6 percent."

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