GaAs Wafer Market Analysis

Global GaAs Wafer Market Overview:

GaAs wafer market size was valued at USD 0.56 billion in 2023. The GaAs wafer industry is projected to grow from USD 0.62 billion in 2024 to USD 1.39 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 10.46% during the forecast period (2024 - 2032). Growing demand for decentralized energy generation systems in emerging, and a rise in awareness regarding adverse environmental impacts of non-renewable sources among buyers are the key market drivers enhancing the market growth.

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

GaAs Wafer Market Trends

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  The rise in the installation of solar systems is driving the market growth

  
  

Market CAGR for GaAs wafer is driven by the increase in solar system installations. The desire to lower the cost of solar cell modules is predicted to increase demand for gallium arsenide germanium solar cells (GaAs), which will fuel the growth of the market during the forecast period. Growing demand for decentralized energy generation systems in emerging countries will increase the penetration toward solar energy, such as GaAs wafer, in the upcoming period. Over one billion of the population has poor or zero electricity access. Initiatives towards off-grid electrification integrated with solar systems will increase the demand for the GaAs wafer.

With the powerful 5G cellular network being introduced to the world in 2019, mobile devices need a semiconductor that can handle the faster signal speed. Due to their ultra-high frequency applications, GaAs wafer can outperform silicon wafers in some of the most important ways. With the emergence of 5G, silicon usage in semiconductor devices will be further reduced. Further, for implementing a 5G network, GaAs wafer can be seen as the next generation of integrated circuits due to their high band gap, which drastically outperforms silicon. According to the Semiconductor Association, the overall market for semiconductors is expected to surpass $20 trillion by 2025 which drives the market for GaAs wafer.

Furthermore, governments of several countries have been investing heavily in deploying 5G. In 2019, China is expected to invest over $150 billion in its 5G networks through 2025. Similarly, Germany stepped towards accelerating the development of 5G services in the country, pouring additional investments into backing domestic endeavors. Hence growing penetration of 5g will drive the GaAs wafer market revenue.

The growth of semiconductor manufacturing is analyzed to create significant opportunities in the forecast period. In 2020, the Indian Government plans to offer around $1 billion in cash to every company that sets up a chip manufacturing unit in India. Similarly, China's 'Made in China 2025' initiative will create significant demand for semiconductor manufacturing in the forecast period. Moreover, the U.S. government is also committed to investing around $50 billion in the semiconductor industry's growth. Silicon is the most important material for semiconductor electronics. Silicon devices and integrated circuits are dominant in most applications, from consumer electronics to automotive drives the market for GaAs wafer.

GaAs Wafer Market Segment Insights:

GaAs Wafer Production Method Insights

The GaAs wafer market segmentation, based on the production method, includes vertical gradient freeze (VGF), liquid encapsulated czochralski (LEC), molecular beam epitaxy (MBE), and metal-organic vapor phase epitaxy (MOVPE). The vertical gradient freeze (VGF) segment dominated the market, accounting for major market revenue as it produces substrates with relatively low defect densities and higher mechanical strength. Vertical gradient freeze (VGF) technology is a proven technique for growing semiconductors composed of multiple elements, including GaAs wafer, arsenic, indium, and phosphorus.

Figure 1: GaAs Wafer Market, by Production Method, 2022 & 2032 (USD billion)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

GaAs Wafer Applications Insights

The GaAs wafer market segmentation, based on applications, includes mobile devices, photovoltaic devices, wireless communication, optoelectronic device, aerospace & defense, and others. The mobile devices category generated the most income over the forecast period. This is majorly due to the continuous advancements in consumer electronics and the use of GaAs wafer in various electronic products proliferating plasma etching applications in smartphones and their demand across almost all industry sectors. With the powerful 5G cellular wireless communication network being introduced to the world in 2019, mobile devices need a semiconductor that can handle the faster signal speed.

GaAs Wafer Regional Insights

By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American GaAs wafer market will dominate over the forecast period, owing to the growing demand for GaAs wafer across numerous end-user industries, high consumer electronics industry growth, and rising support for the semiconductor devices industry in the region. Further, the US GaAs wafer market held the largest market share, and the Canada GaAs wafer market was the fastest-growing market in the European region.

Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: GAAS WAFER MARKET SHARE BY REGION 2022 (%)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Europe GaAs wafer market accounts for the second-largest market share due to the increasing demand for advanced technological devices such as smart devices, smartphones, computers, and laptops. Further, the German GaAs wafer market held the largest market share, and the UK GaAs Wafer market was the fastest-growing market in the European region.

The Asia-Pacific GaAs wafer market is expected to grow at the fastest CAGR from 2023 to 2032. This is due to the growing internet penetration in countries including India, Japan, Korea, and China is anticipated to fuel the market growth. The growing penetration of 4G and 5G networks in these countries, coupled with the enhancing pool of smartphone users, is likely to propel the market growth in this region. Moreover, China’s GaAs wafer market held the largest market share, and the Indian GaAs wafer market was the fastest-growing market in the Asia-Pacific region.

GaAs Wafer Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development to expand their product lines, which will help the GaAs wafer market grow even more. Market participants are also undertaking various strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the GaAs wafer industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the GaAs wafer industry to benefit clients and increase the market sector. Major players in the GaAs wafer market, including Semiconductor Wafer Inc (Taiwan), AXT, Inc. (U.S.), Freiberger Compound Materials GmbH (Germany), Xiamen Powerway Advanced Material Co., Ltd. (China), Sumitomo Electric Industries, Ltd. (Japan), and others, are attempting to increase market demand by investing in research and development operations.

AXT Inc (AXT) develops, manufactures, and supplies semiconductor substrates. The company's product portfolio includes indium phosphide (InP), germanium (Ge), GaAs wafer, boron trioxide (B2O3), and raw and purified gallium. It also offers products that include gallium-magnesium alloy and pyrolytic boron nitride (pBN) crucibles. AXT products find applications in areas such as light-emitting diodes (LEDs), fiber optic and wireless telecommunications, lasers, and solar cells for space and terrestrial photovoltaic applications. In April 2021, AXT, Inc. Supplied the First 8-Inch GaAs wafer to major customer. The 8-inch GaAs wafer substrates, which are silicon-doped, n-type substrates, demonstrate low etch pit densities (EPD) and low levels of slip lines.

Okmetic Inc. manufactures silicon wafers. The Company produces silicon on GaAs wafer, epitaxial wafers, double-side polish wafers, semiconductor wafers, and other related wafers for the sensor and semiconductor industries. Okmetic offers its products throughout the world. In June 2022, Okmetic participated in the EU-wide Position II project that comprised 43 partners and 12 countries. By using available technology platforms for miniaturization, wireless connectivity, MEMS transducer technology, in-tip AD conversion, and encapsulation, the project aimed to create the next generation of smart catheters and implants. These platforms are available to a huge range of consumers and applications.

Key Companies in the GaAs Wafer market include

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  Semiconductor Wafer Inc (Taiwan)

  
  


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  AXT, Inc. (U.S.)

  
  


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  Freiberger Compound Materials GmbH (Germany)

  
  


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  Xiamen Powerway Advanced Material Co., Ltd. (China)

  
  


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  Sumitomo Electric Industries, Ltd. (Japan)

  
  


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  Wafer Technology Ltd. (U.K.)

  
  


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  MTI Corporation (U.S.)

  
  


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  Vital Materials Co., Limited. (China)

  
  


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  DOWA Electronics Materials Co., Ltd. (Japan)

  
  


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  II-VI Incorporated (U.S.)

  
  


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  IQE PLC (U.K.)

  
  

GaAs Wafer Industry Developments

May 2022: The MOSIS Service of Information Sciences Institute, University of Southern California, declared an MoU with WIN Semiconductors Corp. to accelerate the expansion of GaAs wafer and GaN monolithic microwave integrated circuits (MMICs) with WIN Semiconductors' GaAs wafer and GaN process technologies. The partnership will help the dedicated, innovative, and adequate design and prototyping flow via the multi-project wafer (MPW) projects with the MOSIS Service and WIN Semiconductors.

February 2022: ProAsia Semiconductor Corporation., a subsidiary of Optotech Corporation, Taiwan, announced its plan to invest NT USD 3 billion (USD 107.63 million) to make chips using third-generation semiconductor materials. The program will support the demand for the fast-growing electric vehicle, 5G, and green energy markets.

April 2021: AXT, Inc., a leading manufacturer of compound semiconductor substrate wafers, has developed and shipped its first 8-inch diameter GaAs wafer substrates to a major customer. The 8-inch GaAs substrates, which are silicon-doped, n-type substrates, demonstrate low etch pit densities (EPD) and low levels of slip lines.

GaAs Wafer Market Segmentation:

GaAs Wafer Production Method Outlook

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  Vertical Gradient Freeze (VGF)

  
  


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  Liquid Encapsulated Czochralski (LEC)

  
  


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  Molecular Beam Epitaxy (MBE)

  
  


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  Metal Organic Vapor Phase Epitaxy (MOVPE)

  
  

GaAs Wafer Applications Outlook

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  Mobile Device

  
  


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  Photovoltaic Devices

  
  


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  Wireless Communication

  
  


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  Optoelectronic Device

  
  


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  Aerospace & Defense

  
  


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  Others

  
  

GaAs Wafer Regional Outlook

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  North America

  
  

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  US

  
  


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  Canada

  
  

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  Europe

  
  

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  Germany

  
  


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  France

  
  


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  UK

  
  


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  Italy

  
  


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  Spain

  
  


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  Rest of Europe

  
  

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  Asia-Pacific

  
  

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  China

  
  


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  Japan

  
  


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  India

  
  


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  Australia

  
  


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  South Korea

  
  


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  Australia

  
  


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  Rest of Asia-Pacific

  
  

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  Rest of the World

  
  

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  Middle East

  
  


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  Africa

  
  


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  Latin America