#compound semiconductor

September 9, 2025 /SemiMedia/ — Compound semiconductor wafer maker IQE said it is considering a potential sale of the company as part of an expanded strategic review, after warning of weaker annual earnings due to slowing smartphone demand. Its shares fell about 12% in early trading. IQE, a supplier of wafers used in Apple’s iPhone facial recognition sensors, has faced pressure from high tariffs…

Allied Market Research, titled, “Compound Semiconductor Market Size by Type, Product, Deposition Technology, and Application: Global Opportunity Analysis and Industry Forecast," The compound semiconductor market was valued at $90.7 billion in 2019, and is estimated to reach $347 billion by 2031, growing at a CAGR of 11.6% from 2022 to 2031.

Compound semiconductors are single-crystal semiconductor materials that comprise two or more elements. Some qualities change as two or more elements come together to create a single semiconductor crystal, while other properties are added. Rather than using silicon, which lacks this feature, in light-emitting diodes, compound semiconductor technology is preferred. 

Key factors that drive the growth of the compound semiconductor market include an increase in demand for compound semiconductor epitaxial wafer in LED technology, emerging trends toward compound semiconductor wafers in the automotive industry, and the advantage of compound semiconductors over silicon-based technology. Compound semiconductor devices have three times the thermal conductivity and a breakdown electric field strength that is 10 times higher than those made of silicon. This characteristic reduces the complexity and expense of the device, enhancing reliability and enabling it to be used in a variety of high-voltage applications, including solar inverters, power supplies, and wind turbines. The market for compound semiconductor power devices is expanding due to the rising need for power electronics. Electrical power is effectively and efficiently controlled and converted due to power electronics. Compound semiconductor power devices are increasingly being used as a result of the expanding need for power electronics in sectors such as aircraft, medicine, and defense. 

The compound semiconductor industry offers growth opportunities to the key players in the market. The technology used in 5G wireless base stations must combine efficiency, performance, and value. GaN solutions play a crucial role in providing these qualities. GaN-on-SiC delivers considerable gains in 5G base station performance and efficiency over Laterally Diffused Metal-Oxide Semiconductors (LDMOS). Greater thermal conductivity, strong robustness & reliability, improved efficiency at higher frequencies, and comparable performance in a lower-size MIMO array are further advantages of GaN-on-SiC. GaN is anticipated to enhance power amplifiers for all network transmission cells (micro, macro, pico, and femto/home routers), which might substantially impact the rollout of next-generation 5G technology.  

The compound semiconductor market share is segmented on the basis of type, product, deposition technology, application, and region. By type, the market is categorized into III–V compound semiconductors, II–VI compound semiconductors, sapphire, IV–IV compound semiconductors, and others. The III–V compound semiconductors segment is further divided into gallium nitride (GAN), gallium phosphide (GAP), gallium arsenide (GAAS), indium phosphide (INP), and indium antimonide (INSB). The II–VI compound semiconductors segment is classified into cadmium selenide (CDSE), cadmium telluride (CDTE), and zinc selenide (ZNSE). The IV–IV compound semiconductors segment is bifurcated into silicon carbide (SIC) and silicon germanium (SIGE). The others segment includes aluminum gallium arsenide (ALGAAS), aluminum indium arsenide (ALINAS), aluminum gallium nitride (ALGAN), aluminum gallium phosphide (ALGAP), indium gallium nitride (INGAN), cadmium zinc telluride (CDZNTE), and mercury cadmium telluride (HGCDTE). 

On the basis of product, the compound semiconductor market size is categorized into power semiconductors, transistors, integrated circuits (ICs), diodes & rectifiers, and others. The transistors segment is further classified into high electron mobility transistors (HEMTs), metal oxide semiconductor field effect transistors (MOSFETs), and metal-semiconductor field effect transistors (MESFETs). The integrated circuit is bifurcated into monolithic microwave integrated circuits (MMICs) and radio frequency integrated circuits (RFICs). The diode & rectifiers segment is further segmented into PIN diode, Zener diode, Schottky diode, and light emitting diode. By deposition technology, the market is segmented into chemical vapor deposition (CVD), molecular beam epitaxy (MBE), hydride vapor phase epitaxy (HVPE), ammonothermal, liquid phase epitaxy (LPE), atomic layer deposition (ALD), and others.  

On the basis of applications, the compound semiconductor market analysis is segregated into IT & telecom, industrial and energy & power, aerospace & defense, automotive, consumer electronics, and healthcare. IT & telecom is further segmented into signal amplifiers & switching systems, satellite communication applications, radar applications, and RF. Aerospace & defense is classified into combat vehicles, ships & vessels, and microwave radiation. Industrial and energy & power are further segmented into wind turbines and wind power systems. Consumer electronics is further segmented into inverters, LED lighting, and switch-mode consumer power supply systems. The automotive segment is further divided into electric vehicles & hybrid electric vehicles, automotive braking systems, rail traction, and automobile motor drives. The healthcare segment is further bifurcated into implantable medical devices and biomedical electronics. 

Region-wise, the compound semiconductor market trends are analyzed across North America (the U.S., Canada, and Mexico), Europe (UK, Germany, France, and the rest of Europe), Asia-Pacific (China, Japan, India, Australia, and the rest of the Asia-Pacific), and LAMEA (Latin America, the Middle East, and Africa). 

KEY FINDINGS OF THE STUDY 

The IV-IV compound semiconductor segment dominated the compound semiconductor market growth, in terms of revenue, and is expected to follow the same trend during the forecast period.   

The power semiconductor segment was the highest revenue contributor to the market in 2021, and it is anticipated to grow at a significant CAGR during the forecast period. 

The chemical vapor deposition and molecular beam epitaxy segments collectively accounted for around 42.7% market share in 2019, with the former constituting around 23.5% share 

The IT and telecom segment was the highest revenue contributor to the market in 2021. 

Asia-Pacific and North America collectively accounted for around 74.2% share in 2019, with the former constituting around 51.37% share. 

According to the report published by Allied  Research, the global compound semiconductor market generated $89.94 billion in 2019, and is estimated to reach $212.95 billion by 2027, registering a CAGR of 11.1% from 2020 to 2027. The report offers an extensive analysis of changing  dynamics, key winning strategies, business performance, major segments, and competitive scenarios.

Surge in demand for epitaxial wafer in LED technology and growing adoption of compound semiconductors compared to silicon-based technology drive the growth of the global compound semiconductor market. However, high cost associated with compound semiconductor components and materials is anticipated to restrain the market growth. Furthermore, rise in usage in smart technologies is expected to provide new growth opportunities during the forecast period.

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Covid-19 scenario:

Major compound semiconductor manufactrurers across the globe have halted their production activities due to disrupted supply of raw materials such as gallium and arsenide due to restrictions on mobility amid lockdown.

Electronic components such as LED chips, PCBs, ICs, and wafers are mostly imported from China. Due to the shutdown of manufacturing units in China amid the lockdown, the prices of compound semiconductor components have been increased by 2-3% due to shortage of supplies.

The report offers a detailed segmentation of the global compound semiconductor market based on type, deposition technology, product, application, and region.

Based on type, the III-V compound semiconductors segment contributed to the largest share in 2019, accounting for nearly one-fourth of the total share, and is estimated to maintain its dominant position during the forecast period. However, the sapphire segment is estimated to portray the highest CAGR of 13.5% during the forecast period.

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Based on deposition technology, the chemical vapour deposition segment accounted for the largest share in 2019, holding more than one-fourth of the total share, and is expected to maintain the largest share throughout the forecast period. However, the molecular beam epitaxy segment is expected to register the highest CAGR of 12.8% from 2020 to 2027.

Based on region, Asia-Pacific contributed the highest share, accounting for nearly half of the total  share in 2019, and will maintain its dominance throughout the forecast period. In addition, it is expected to grow at the highest CAGR of 13.2% from 2020 to 2027. The report also analyzes regions including North America, Europe, and LAMEA.

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Leading  players analyzed in the research include Nichia Corporation, Cree Inc., Qorvo, Samsung Electronics, Taiwan Semiconductor Manufacturing Company Ltd., NXP Semiconductor N.V., Texas Instruments Inc., Renesas Electronics Corporation, Infineon Technologies AG, and STMicroelectronics NV.

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