- 9 May 2006 -

RF PA vendors look to new markets and GaN

A new ABI Research study of the wireless base station RF power amplifier (PA) market has concluded that three factors will determine the shape of the sector over the next five years.

According to "RF Power Amplifiers: Equipment and RF Power Device Analysis for Cellular Infrastructure Markets" these three developments will have to be taken into account by all vendors in this market.

Market consolidation, as predicted by ABI Research in 2004, has altered the industry landscape: falling prices, cost pressures and reduced overall market demand have resulted in a cut-throat competitive business environment. This trend is set to continue it warns.

The realization that the Total Available Market (TAM) is decreasing is really starting to hit home with players in this market. Depending on their market position, companies will need to take a hard look at their commitment to remaining in this business. Indeed, some companies' very survival may depend on their ability to diversify to new sectors beyond wireless infrastructure.

Some vendors are trying to work around this difficulty by offering more vertically-integrated base station semiconductor product lines, but, as the report observes, "it's a tough sell because of the small size of this extremely competitive market."

Finally, a new technology looks set to change the nature of the market - gallium nitride.
GaN is a good choice for use in certain types of switch-mode high-efficiency amplifiers. In 2004, such products were just a glimmer on the horizon, as it puts it. Designs lacked refinement, and there were questions around GaN's reliability and ease of manufacturing. However, the past two years have seen significant progress on all those fronts, and according to ABI Research's analysis, GaN looks as though it could pose a very credible threat to the dominance of silicon LDMOS by 2011.

"RF Power Amplifiers" forms a part of two ABI Research's subscription Services, Wireless Infrastructure Research Service and Wireless Semiconductors Research Service, which also contain a variety of research reports, regular market updates, forecast and industry databases, ABI Insights and analyst inquiry time.

Web: www.abiresearch.com