Strategy Analytics: COVID-19 Will Reduce GaAs Revenue in 2020, but Recovery Could be Swift

Deployment of 5G Devices and Networks Will Power the Recovery

BOSTON–(BUSINESS WIRE)–With a heavy dependence on cellular terminals, recent forecasts of declining handset shipments in response to the COVID-19 pandemic will result in lower GaAs device revenue in 2020. This is a conclusion of the Strategy Analytics Advanced Semiconductor Application (ASA) insight “A First Look at the Effects of COVID-19 on GaAs Revenue”. Based on current trends in several application segments, the insight forecasts a likely trajectory for GaAs revenue out to 2025.

“GaAs RF device revenue growth has struggled in recent years and revenue actually declined for the first time in many years in 2019,” noted Eric Higham Director of the Advanced Semiconductor Applications (ASA) service. “GaAs revenue links closely to trends in the cellular segment, so recent forecasts of sharp drops in smartphone shipments caused by the COVID-19 pandemic will contribute to further declines in GaAs revenue.” He went on to say, “The complete effects of COVID-19 on the supply chain remain unclear, but I’m optimistic about the future of GaAs device revenue. Based on the most recent information, 5G will become a strong growth engine and GaAs device revenue should be reaching new highs in the next few years.”


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