24 October 2016

Gallium demand to grow at 6% annually to 420t in 2020

The market for gallium in semiconductor/semi-insulating applications is set to rise at 6% annually to about 420 tons in 2020 as general illumination shifts away from incandescent-filament and fluorescent lamps to light-emitting diodes, according to the report 'Gallium: Global Market Trends and Prospects' from Merchant Research & Consulting Ltd.

In particular, the usage of gallium in LEDs for general lighting is set to grow at 16% per year. Meanwhile, the usage of gallium in integrated circuits is projected to remain most prominent, but to drop to 43% of the total. Consumption in LEDs for backlighting applications is unlikely to see robust growth due to the increased technical effectiveness of LEDs.

Despite the overall growth, the gallium market sees continuing oversupply. Between 2010 and 2013 Chinese capacity for production of primary gallium increased threefold in anticipation of surging demand for gallium nitride (GaN) LEDs for backlighting of liquid-crystal display (LCD) panels used in tablets, cell phones and TVs. The worldwide transition to LED general lighting over the next five years is poised to restore some balance to the gallium marketplace, but supply will likely remain more than adequate.

Japan is poised to take the lead in gallium consumption, although its market share will fall from 47% in 2014 to just over 40% in 2020, forecasts the report. Meanwhile, due largely to the increased usage in lighting, China's share is likely to surge to 35%.

http://www.semiconductor-today.com/news_items/2016/oct/merchantresearch_241016.shtml