Strategies Unlimited Forecasts Increasing Demand for Advanced Substrates for Gallium Nitride Devices

Business Wire, May 26, 2009

MOUNTAIN VIEW, Calif. -- Over the past 15 years, the availability of high quality sapphire and silicon carbide substrates has enabled the rapid growth of the gallium nitride device (mainly high-brightness LED) market to $4.6 billion in 2008. However, according to Strategies Unlimited’s recently released report Substrates for GaN-Based Devices: Performance Comparisons and Market Assessment 2009, increasing demand for blue-violet laser diodes, UV LEDs and high-power, high-frequency electronic devices will provide significant market opportunities for advanced substrates such as gallium nitride and aluminum nitride. These substrates will be needed to provide the lattice matching and thermal characteristics necessary to produce high-performance devices at high yields. At the same time, demand for higher device manufacturing throughput and lower costs will push sapphire and SiC diameters from two inches to three and four inches, and ultimately to six inches.

A number of companies are in a position to provide such substrates as the market expands. These include larger established companies such as Sumitomo Electric, Cree and Samsung Corning, as well as smaller technology-focused startups such as Crystal IS, Kyma, and TopGaN. The effort to develop advanced substrates, as well as to improve conventional substrate properties, is worldwide in scope and includes 80 companies and 65 universities and research centers.

Based on the forecast demand for high-brightness LEDs, blue-violet laser diodes, and high-power, high-frequency electronic devices, the worldwide merchant market (excluding captive producers such as Cree) for substrates for gallium nitride devices is forecast to grow from $280 million in 2008 to $470 million in 2013. Advanced substrates such as gallium nitride and aluminum nitride are predicted to comprise more than 40% of the market in 2013.

Substrates for GaN-Based Devices: Performance Comparisons and Market Assessment 2009 provides: in-depth comparisons of the suitability and performance of substrates (sapphire, silicon carbide, silicon, gallium nitride and aluminum nitride) for different types of GaN-based devices; analysis of the impact of substrate choice on device parameters such as performance, reliability and yield; descriptions of the state of the art in producing advanced substrates; profiles of the leading organizations involved in substrate development and production; and market forecasts of both GaN-based devices and substrates through 2013. The report is available for immediate delivery from Strategies Unlimited for $3,450. More information on the report is available from Tim Carli, Sales Manager, telephone 1 650-941-3438 ext. 23, or e-mail tcarli@strategies-u.com.

Founded in 1979, Strategies Unlimited specializes in market research and strategic consulting directed at the compound semiconductor materials, optoelectronics, and laser industries. The company, based in Mountain View, California, is a research unit of PennWell Corporation.

PennWell Corporation, founded in 1910, is a highly diversified media and information company providing authoritative publications, conferences and exhibitions, databases, information products and Internet-based services to strategic markets worldwide. Its headquarters are in Nashua, NH, and Tulsa, OK, with remote offices and partners located around the globe.