The overall GaAs device market grew revenue to nearly $7.5 billion of merchant and captive revenue (excluding foundry revenue). This marks the 12th straight year that the GaAs device market has grown. Wireless applications, expecially cellular terminals continue to dominate the revenue and serve as the growth engine for the entire GaAs market.
We think competitive technologies, slowing smartphone growth and price erosion will start to put the damper on this growth engine before emerging applications add to the market by the end of the forecast period. We estimate that growth in 2016 will be followed by a slight contraction in the next two years.