The compound semiconductor industry -- including microelectronics, optoelectronics, and materials equipment markets -- will face challenges in 2008 as a result of turmoil in the financial markets, according to the Strategy Analytics GaAs and Compound Semiconductor Technologies (GaAs) service.

Overall, 2007 was a strong year for the GaAs device industry, bolstered by strong orders from high volume sectors. Moving into 2008, the compound semiconductor industry and technology stocks in general face a more challenging investment climate as turmoil in financial markets from the sub-prime crises continue to spread.

“A snapshot of 2007 industry financials shows mixed fortunes both in terms of revenue growth and profitability for the full year,” says Asif Anwar, GaAs service Director. “Despite the challenges, indicators at this stage suggest that the overall metrics for the key end markets remain robust, and the compound semiconductor market leaders should be able to weather the storm.”

Stephen Entwistle, VP of the Strategic Technologies Practice, adds, “Suppliers to the infrastructure markets may face some challenges, but outside the anticipated flattening off predicted in earlier Strategy Analytics studies, we have no hard evidence yet of a significant downturn this year.”

About these studies

The Strategy Analytics "Compound Semiconductor Industry Review" reports for January through February cover the microelectronics, optoelectronics and materials/equipment markets.

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