Capacity Issues in the Material Supply Chain

Scott Davis
Sumitomo Electric Semiconductor Materials, Inc.

Since early in 2000, GaAs device manufacturers and epitaxial foundries have encountered difficulty procuring substrates needed to meet production requirements. Wafer suppliers acting to remedy the shortage have invested in new capacity but now find that the worldwide supply of gallium does not meet demand. With gallium in short supply, prices have risen sharply. GaAs substrate prices have also increased. This paper examines the nature of material shortage and the prospects for the coming year.