Telecom effect on Semiconductors:
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To: dennis michael patterson (1832 )
From: jay silberman
Saturday, Dec 25 1999 12:55AM ET
Reply # of 1833
fiberopticsonline.com.
Wireless And Fiber Optic Networks To Boost Compound Semiconductor Sales To
$10 Billion Compound Semiconductor Magazine Predicts Communications
Applications Will Grow 33 - 40% Annually
12/7/99
BEVERLY, Mass., Dec 7, 1999 /PRNewswire via COMTEX/ -- Sales of compound
semiconductor devices will reach the $10 billion mark in 2000, predicts an article in the
December issue of Compound Semiconductor Magazine. "Shipments of compound
semiconductor devices increased nearly 4x in this decade, and the outlook for the
years
ahead is extremely good," says Managing Editor Marie Meyer. "If the current growth
rates can be sustained -- and there are no indications to the contrary -- shipments of
compound semiconductor devices should reach the $20 billion level in less than 5
years."
Compound semiconductors are the second most common type of semiconductor, after
silicon. The most common example of a compound semiconductor device is the light
emitting diode (LED), which accounts for approximately 40% of all sales. However,
the
highest growth rates are found in more sophisticated devices that are used as
components in communications systems. Examples include GaAs power amplifiers for
mobile phones, and semiconductor laser diodes and high-speed ICs used in fiber optic
networks.
In many cases, compound semiconductors serve as the key enabling technology for
communications systems, and demand for these devices is soaring. The total market
value for compound semiconductors used in communications applications is estimated
to
be more than $3.5 billion, with current annual growth rates in excess of 33%.
As a result, virtually all of the companies that are active in this field have seen huge
increases in their valuations. Since the first of the year, shares in three manufacturers of
telecom laser diodes -- JDS Uniphase, SDL Inc., and Ortel -- have risen more than
600%. "We believe the growth rates in laser diodes may be even higher with the
aggressive deployment of wavelength division multiplexing (WDM) networks and a
robust SONET market," says Jim Jungjohann, a telecom analyst at CIBC World
Markets.
Share prices for several manufacturers of GaAs ICs have also increased dramatically.
RF Micro Devices is up more than 1800% over the past two years. Shares in Vitesse,
TriQuint, and Alpha Industries have risen more than 300% in that same period. And
Conexant shares have risen more than 500% since the company's IPO in January.
"With
the strong growth in mobile telephony and broadband wireless access opportunities,
demand is accelerating for high- speed, high bandwidth components. We expect that
technology advances will keep GaAs, SiC and other advanced materials in the
forefront
of the bandwidth revolution," said Dale Pfau, Managing Director at CIBC World
Markets. "We could see growth over the next several years even stronger than we
have
over the past two or three."
Compound Semiconductor Magazine, with sponsorship from CIBC World Markets, is
hosting a conference about the applications of compound semiconductors in the
communications industry. The Key Conference on Compound Semiconductors in
Communications will be held in Key West, Florida March 13-14, 2000 at the
Wyndham Casa Marina Hotel. Leading industry analysts and representatives of many
of
the top compound semiconductor fabs will present their views on the future of this
industry. Speakers from Lucent, Nortel Networks, TRW, JDS Uniphase, Anadigics,
Gore Photonics, Cree Research, Rockwell Science Center, Strategies Unlimited,
OIDA, Strategies Analytics and many others are scheduled to appear.
To download the full text of the article referenced above in PDF format, visit
keyconference.com and select "Press Releases" and scroll to the bottom
of
the page.
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