Hitachi Cable Hikes Gallium Arsenic Wafer by 15-20%

Hitachi Cable will increase the selling price of gallium arsenide wafer by 15-20% for April shipment. The firm increases the price of epitaxial wafer, which is gallium arsenide layered wafer, by 7-10%. The firm tries to cover higher cost for gallium and arsenic under strong demand. Sumitomo Electric Industries and other domestic competitors could follow the move. Gallium arsenide is one of the compound semiconductors and is used for laser diode to read and store data, red colored light emitting diode and power devices for cell phone. International spot market price of gallium ingot with 99.9% purity is US$ 425 per kilogram, which increased by more than 30% in a year. The price increases when the major supplier of China controls export. With the higher material price, price of gallium ingot with 99.99% purity, which compound semiconductor makers purchase, also increases. International spot market price of arsenic is 52 US cents per pound, which increased by near 5% in a year. However, Furukawa Denshi, which has 90% domestic market share for high purity arsenic, announced 50% hike in December 2005 and domestic compound semiconductor makers accepted part of the hike in 2006.