Asia suppliers grab share in compound semi wafer market

August 15, 2006 – Kopin, Hitachi Cable, and IQE took the top three spots among merchant suppliers of epitaxial material in 2005, due to heavy demand for semi-insulating (SI) GaAS epi substrates, a market that is expected to surge to $487 million by 2010, according to data from Strategy Analytics.

Demand for SI GaAs epitaxial substrates jumped 44% last year, with Asia-Pacific vendors establishing themselves as viable alternatives to dominant suppliers in North America and Japan, the study noted. Combined output at VPEC and MBE Technology increased 145% during 2005, with the two companies accounting for about 15% of the total market.

Healthy demand and tight supply will continue to drive sales for merchant suppliers, noted Stephen Entwistle, VP of Strategy Analytics’ strategic technologies practice. He expects to see some significant shifts in market share this year, such as IQE’s acquisition of Emcore’s GaAs epi business, and VPEC and MBE Technology taking advantage of ramps at GaAs device foundries in the Asia-Pacific region.


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