GaAs foundry house Advanced Wireless Semiconductor Company (AWSC) saw revenues for December 2010 slip 15.5% sequentially to NT$153 million (US$5.25 million), yet fourth-quarter revenues only fell 3.7% sequentially to NT$523 million. Total 2010 revenues are expected to approach NT$2 billion.

For the first quarter of 2010, AWSC will likely see a 10% sequentially decline in orders, according to analysts.

Though fellow wafer maker Visual Photonics Epitaxy Company (VPEC) has not announced its December results, analysts estimate only a slight monthly revenue drop for the period and fourth-quarter sales should jump more than 20% sequentially. With clients still aggressively building up inventory, first quarter revenues will increase farther.

Thanks to the popularity of smartphones and tablet PCs, the outlook of 2011 GaAs demand looks bright. In addition to strong demand for end-use products, the higher number of GaAs-based power amplifiers (PA) in devices will also help boost shipments. Both Apple's iPhone 4 and Samsung Electronics' Galaxy S smartphones incorporated five PAs.

Skyworks and TriQuint Semiconductor, which supplies PAs to Apple and Samsung, are expected to be the biggest beneficiaries of the current trend.