Taiwan-based compound semiconductor components suppliers including Transcom and Intelligent Epitaxy Technology (IntelliEPI) are aggressively venturing their GaAs, GaN and GaSb devices into automotive, military and aerospace markets to net higher profit margins, according to industry sources.
The sources said though compound semiconductor devices see largest application outlet in the smartphone market, their traits of high frequency and high power allow the devices to enjoy ever-increasing demand from automotive, military and even aerospace markets boasting high growth potentials, prompting makers to step up efforts to cash in on the demand.
Dedicated to developing high-frequency microwave communication devices, Transcom has enjoyed stable shipments to Taiwan's military units, with products mainly including GaAs and GaN devices for use in high-frequency and high-power satellite communications systems, high-frequency radar systems, wireless communication equipment, and wireless local area networks (WLAN), the sources said.
At the moment, Transcom has a high revenue ratio of 80% for military-use compound semiconductor devices. The company saw its revenues for December 2018 shoot up 349% on month to NT$50 million (US$1.62 million), and it expects revenues for 2019 to enjoy a double-digit annual growth thanks to clear order visibility.
Another Taiwan maker IntelliEPI has landed orders for GaAs wafers from a French maker of automotive anti-collision radar chips and from Skyworks, a US-based power amplifier (PA) devices supplier, the sources said, adding the company has also penetrated its gallium antimonide (GaSb) devices into US military supply chains.
Article translated by Willis Ke
