YG PRESS NEWS – Is GaAs poised to outperform InP in the technological market?

Product Related

GaAs is on the verge of a significant resurgence in the consumer market, surpassing InP, as the optical communications sector faces a challenging slowdown, experiencing a sharp 9% decline in Q2-23.

  • According to Yole Intelligence, the InP market will grow from US$3 billion in 2022 to US$6.4 billion in 2028.
  • Lumentum vs Coherent: the rivalry between two GaAs photonics business models is fundamentally restructuring the supply chain.
  • Replacing GaAs VCSELs with InP EELs could pave the road for major GaAs players to move into InP, as both materials share the same processing tools.

According to Yole Intelligence, part of Yole Group, in the Photonics GaAs and InP Compound Semiconductor Market Monitor, in the upcoming quarters, the InP and GaAs markets are poised for substantial growth, driven by the expanding applications of artificial intelligence across various industries. As these applications continue to proliferate, the demand for faster and more efficient data transmission becomes increasingly critical. This demand is primarily due to the rising need for 800G optical transceivers, which feature GaAs VCSELs for short-reach applications and InP EMLs for long-reach applications. This shift could potentially lead to a recovery in the datacom market between Q3-23 and Q4-23 after a significant slowdown in the first half of 2023.

In the realm of mobile and consumer applications, Apple is scheduled to launch its iPhone 15 models on September 12th. It is anticipated that Apple will revert to using GaAs-based proximity sensors in a Pill-shape design instead of the under-display InP-based sensors.

Additionally, China has announced its intention, as of July 4th, to implement restrictions on gallium, germanium, and their chemical compounds to safeguard Chinese national security, effective from August 1st, 2023. Exporters will be required to obtain licenses from the commerce ministry to continue shipping these materials out of the country. During this quarter, Yole analysts will provide their insights and analysis regarding the recent export regulations and their short-term and long-term implications for the compound semiconductor supply chain… For more information about this analysis, please contact us!

Titre du visuel

june 2021

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