Radar, communications, smart munitions, and electronic warfare contract awards Exceed $16 billion in 2006

BOSTON, 19 Dec. 2006. The newly released Strategy Analytics GaAs and Compound Semiconductor Technologies (GaAs) service report, "Defense Spending Increases Provide Robust Market for Compound Semiconductors," projects that the market for GaAs devices will see continued growth at a compound average annual growth rate of eight percent through to 2010.

Dec 19th, 2006

BOSTON, 19 Dec. 2006. The newly released Strategy Analytics GaAs and Compound Semiconductor Technologies (GaAs) service report, "Defense Spending Increases Provide Robust Market for Compound Semiconductors," projects that the market for GaAs devices will see continued growth at a compound average annual growth rate of eight percent through to 2010.

GaAs remains a staple ingredient in military and defense systems covering radar, communications, electronic warfare, and smart munitions. The value of defense contracts awarded in 2006 for these applications will exceed $16 billion, with projects extending through 2015.

Emerging compound semiconductor technologies, such as GaN, will also start to influence the design of future defense systems, providing wider bandwidth, higher power and higher frequency capabilities.

"The upside for GaAs device manufacturers also working on GaN is that the high-power, high-frequency capabilities of GaN should allow them to compete in areas that have traditionally been dominated by vacuum tube technology," notes Stephen Entwistle, VP of the Strategy Analytics Strategic Technologies Practice.

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