Sumitomo Electric to Increase Compound Semiconductor Sales by 20%

Sumitomo Electric Industries targets around 20% higher sales of compound semiconductor for fiscal 2006 ending March 2007 from estimated 17 billion yen for fiscal 2005, which is 20% higher than fiscal 2004. The sales increased in fiscal 2005 due to higher shipment of gallium arsenide for electric devices of cell phone. The firm expects higher demand of gallium nitride for digital versatile disc and light emitting diode while the demand of gallium arsenide and epitaxial wafer recovers for next generation DVD in fiscal 2006.The gallium arsenide is used for laser diode and LED to read and write data of DVD and compact disc and for electric devices of cell phone. The firm produces the substrate and epitaxial wafer in the integrated process. The demand of substrate and epitaxial for electric devices started to increase mainly for North America in 2005 and the firm operates the facility at full capacity at 70,000 units per month in products with 4 inches of diameter.