Taiwan-based Wavetek Microelectronics, a subsidiary of United Microelectronics (UMC) dedicated to providing 6-inch GaAs foundry services for fabless and IDM companies, has expressed optimism about the compound semiconductor market's growth driven by robust radio-frequency (RF) component demand.

With mobile operators looking towards rolling out 4.5G networks before the arrival of 5G, demand for RF ICs will grow through 2020, according to Wavetek. The market for compound semiconductors applied to smartphone power amplifiers and base station applications is forecast to rise at a CAGR of 12.9% to US$44 billion in 2020 outpacing the overall semiconductor sector's 6.5% growth, Wavetek indicated.

The compound semiconductor market's growth will also be driven by chips for use in new smartphones that offer more functionalities, such as wireless headsets and biometric authentication, Wavetek noted.

LEDs remain the largest compound semiconductor sector, but RF ICs will grow gradually to account for about 25% of the overall compound semiconductor market by 2020, Wavetek said.

Wavetek in 2015 acquired UMC's Fab 6A CMOS production lines including equipment and IP for around NT$440 million. Founded in 2010, Wavetek is located at the Hsinchu Science Park (HSP) in northern Taiwan."

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