Communications

“Spending on WiMAX infrastructure is expected to increase dramatically in the next few years, growing from $15 million in 2004 to $115 million in 2005, a 666.7 percent increase, and then rising to $290 million by 2008, growing at a 109.7 percent CAGR.”

- Telecommunication Industry Association (TIA), 2005 Telecommunications Market Review and Forecast

The first commercially available silicon carbide-based devices optimized for WiMAX and broadband wireless access applications were introduced in 2005.  These devices offer increased reliability, efficiency, and temperature limits, allowing a significantly smaller device to carry the same or greater power level than what is achievable with conventional materials such as silicon.

WiMAX, a wireless technology that provides high-throughput connections over long distances, is described by the TIA as “potentially disruptive, in that it could compete with other high-speed fixed solutions, including DSL and cable modems, as well as high-speed mobile solutions like 3G.”

Base stations for mobile phones represent another important potential market for silicon carbide in the communications sector.  Driving the opportunity is the transition from 2.5G to 3G wireless technology, which will result in a 49% annual increase in spending over the next several years.  For silicon carbide manufacturers, base station wafer demand is projected to increase 800% between 2006 and 2010.