- 08 September 2006 -

RF Industry Outlook Brightens; Profits & Start-up Climate Improved in Q1

Strategy Analytics has released, "RF Component Industry Review: January - March 2006," noting that financial performance reported by RF component suppliers in Q1 improved.
Demand for RF components in Q1 remained strong, supported by strength in the cellphone market. Fifty-three percent of the top RF component suppliers covered reported significant profits, and the number of suppliers reporting net losses remained relatively low, by recent historical standards.

"As a sign of optimism in the industry, funding in RF start-ups approximately doubled from the previous quarter to $250 million, led by VC interest in basebands for multi-mode 3G and WiMAX," said Chris Taylor, Director of the RF & Wireless Component service.
Asif Anwar, Director of the GaAs and Compound Semiconductor service, added, "Volumes remained at historical highs for the leading power amplifier (PA) suppliers, most of whom made cautious plans to expand capacity."

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