WLAN GAAS IC MARKET TO GROW 139% IN 2003, REPORT FINDS

By Online staff, Electronic News

The wireless LAN GaAs IC market is expected to see 139 percent growth in 2003 and a compound annual average growth rate of 21 percent through to 2008, Strategy Analytics reported today .

Switches and power amplifiers will represent the main opportunities for GaAs devices, the research firm said, putting GaAs power amplifiers at a 67 percent share of the 177 million units shipped by 2008. On that, Strategy Analytics predicted that all WLAN switch ICs will use GaAs technology, with dual-band systems that cover 5GHz and 2.4Ghz frequencies incorporating up to two switches per system.

"Harmonization of worldwide 5GHz WLAN operation, and a rapid move towards dual-band systems incorporating 802.11a/g combo devices, will provide the momentum for the GaAs IC market," Asif Anwar, a senior analyst at Strategy Analytics, said in a statement. "The power amplifier, in particular, will be a bright spot."

Specifically, the overall market for RF and associated chips for 802.11, including power amplifiers and switches, will grow from $487 million in 2002, to $637 million in 2003. By 2008, Strategy Analytics estimates dual-band 802.11a/g combo devices will make up more than 75 percent of the devices shipped.

Anadigics, Microsemi and Raytheon are the early leaders in the WLAN GaAs power amplifier market, the firm reported. Meanwhile, RF Micro Devices and Skyworks have taken the lead in GaAs power amplifiers for cellular handsets, eyeing the WLAN market as their next target, Strategy Analytics said.

This article was originally published by Electronic News, 22 September 2003