"As we move into 2010, there continue to be areas of opportunity for our business. One of the most interesting is the projected growth of smart phones and other sophisticated Internet-connected devices, such as netbooks, that support more advanced features and access to new web-based applications and services. In addition to improving sales of these products, the benefit to AXT from the sales of more feature-rich, sophisticated devices is that they require a greater content of gallium arsenide in order to meet the speed and functionality requirements that consumers have come to expect. Even with the steep decline in spending associated with 2G legacy networks, carriers continue to invest in 3G, 3G+ and 4G in order to remain competitive and attract new subscribers. This network upgrade enables full performance capability of the video, gaming and Internet browsing capabilities of these next generation handsets and wireless devices and is driving increases in wireless subscribers in key geographic areas around the world as well as a compelling upgrade cycle for new devices. Since 2006, we have more than tripled our 6-inch gallium arsenide capacity in order to meet this increasing demand for our products and we plan to continue to expand as new qualifications and growing demand require greater production volume."
So for every end-product phone that includes our technology, we will be making more than what we made in prior years.
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