Gallium Phosphide Market Size, Production, Sales, Average Product Price, Market Share, Import vs Export

Gallium Phosphide Market: Momentum Accelerates Across High-Tech Industries 

The Gallium Phosphide Market is entering a phase of unprecedented acceleration, fueled by dynamic advancements in optoelectronics, telecommunications, renewable energy, and quantum computing. With material properties that support high electron mobility, superior thermal stability, and efficient photon emission, Gallium Phosphide has become a critical enabler for future-ready technologies. The sharp rise in demand across multiple industrial sectors is a testament to its increasing importance in next-generation semiconductor solutions. 

Gallium Phosphide Market Size: Rapid Expansion Signals Future Dominance 

Gallium Phosphide Market Size is projected to grow at a CAGR exceeding 10% through the next decade. Such strong growth is not speculative—it is anchored in the escalating demand for devices such as LEDs, solar cells, photonic sensors, and optical data transmission components. For instance, the global LED market alone is expected to surpass $120 billion in value by 2030, and Gallium Phosphide remains one of its essential raw materials. The trajectory of the Gallium Phosphide Market Size is further amplified by investments in emerging sectors like quantum technology and advanced robotics, which depend on high-performance semiconductor platforms. 

Optoelectronic Innovations Powering the Gallium Phosphide Market 

The core growth engine of the Gallium Phosphide Market lies in its application in optoelectronic devices. Gallium Phosphide is widely used in the fabrication of red, green, and amber LEDs, as well as photodetectors and laser diodes. For example, the automotive lighting segment has shifted almost entirely toward LED-based systems, leading to double-digit growth in demand for Gallium Phosphide-based substrates. Consumer electronics, smart wearables, and digital signage solutions are also pushing the envelope, as high-efficiency displays rely heavily on semiconductor materials with high luminous efficacy. As manufacturers target longer-lasting, compact, and power-efficient solutions, Gallium Phosphide remains an irreplaceable component, securing its position at the forefront of the optoelectronics revolution. 

Gallium Phosphide Market Strengthens Amid Telecommunication Expansion 

Telecommunications is witnessing exponential infrastructure growth, particularly with the global rollout of 5G and the integration of fiber-optic backbones. The Gallium Phosphide Market is responding with significant expansion, as the material is a key enabler in photodetectors, optical modulators, and high-frequency signal processing units. These components are critical for reducing signal loss, enhancing speed, and ensuring bandwidth stability. For instance, 5G network deployments are forecast to connect over 5 billion users by 2030, all of which demand ultra-fast, high-fidelity optical components. Gallium Phosphide, with its optical transparency and wide bandgap, is uniquely positioned to support this transformation. As a result, telecom equipment manufacturers are aggressively increasing their sourcing of Gallium Phosphide components. 

Renewable Energy Applications Reinforcing Gallium Phosphide Market Growth 

Gallium Phosphide has emerged as a high-potential material in solar technology, particularly in the development of multi-junction solar cells. These cells, which combine multiple semiconductor layers to capture broader wavelengths of sunlight, can exceed 40% efficiency under concentrated solar conditions. Traditional silicon-based solar cells are capped at around 22%–24%, which highlights the efficiency advantage Gallium Phosphide offers. Countries with ambitious net-zero emission targets are turning to such advanced materials to boost solar yield per square meter. The Gallium Phosphide Market benefits directly from these policy shifts, as large-scale solar deployments increasingly adopt high-efficiency architectures. Additionally, off-grid power systems, satellites, and aerospace energy solutions are further boosting the demand for Gallium Phosphide-based photovoltaics. 

Quantum Computing: A High-Value Frontier for Gallium Phosphide Market 

The rise of quantum computing presents one of the most transformative opportunities for the Gallium Phosphide Market. Research institutions and technology firms are exploring the use of Gallium Phosphide in quantum dot arrays and photonic qubit systems. These applications require semiconductor materials that can handle ultra-fast switching speeds, minimal energy loss, and precise photon control—capabilities where Gallium Phosphide excels. As development accelerates, the material is expected to serve as a foundational platform for next-generation quantum processors and communication systems. The Gallium Phosphide Market is thus not only riding current technological trends but is deeply embedded in the architecture of future computing paradigms. 

Electric Vehicles and Power Electronics Fueling Demand in Gallium Phosphide Market 

Another major catalyst in the Gallium Phosphide Market is the electric vehicle (EV) industry, where power density and heat resistance are paramount. Gallium Phosphide offers high breakdown voltage and superior thermal conductivity, making it ideal for use in power amplifiers, radar systems, and high-frequency converters. As EV adoption scales—projected to account for over 30% of total vehicle sales by 2030—the demand for efficient powertrain and lighting solutions rises in tandem. Gallium Phosphide-based electronics allow for smaller form factors, faster charging, and reduced energy loss, giving automakers a significant performance advantage. This technology edge is driving EV manufacturers to integrate Gallium Phosphide across vehicle control systems and onboard sensors. 

Gallium Phosphide Market Driven by Regional Technology Leaders 

The regional landscape of the Gallium Phosphide Market reflects the global race for semiconductor leadership. In Asia-Pacific, countries like China, Japan, and South Korea have established themselves as dominant producers and consumers, leveraging their integrated electronics supply chains. In Europe, Germany and the United Kingdom lead in adoption, particularly in automotive lighting, smart infrastructure, and solar R&D. Meanwhile, North America, led by the United States, is ramping up domestic semiconductor initiatives under programs like CHIPS and Science Act, further expanding Gallium Phosphide production and consumption. These geographic trends are not isolated but synergistic—each reinforcing global supply chains and sparking inter-regional competition, which ultimately benefits innovation and market growth. 

Technological Innovations Catalyzing Gallium Phosphide Market Dynamics 

Innovation continues to push the boundaries of Gallium Phosphide use-cases. Research breakthroughs in molecular beam epitaxy and chemical vapor deposition have enabled the production of ultra-pure, defect-free Gallium Phosphide wafers. These advancements enhance yield, consistency, and performance in optoelectronic devices. Furthermore, hybrid manufacturing techniques are allowing integration of Gallium Phosphide with other III-V semiconductors, resulting in multi-functional chips that combine logic, power, and optical capabilities on a single substrate. Such innovations are fueling cross-sector adoption—from aerospace and defense to healthcare diagnostics—solidifying the Gallium Phosphide Market as a hub of cutting-edge semiconductor engineering. 

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Asia Pacific Leads Global Gallium Phosphide Market in Production and Demand 

The Asia Pacific region commands the largest share of the Gallium Phosphide Market, driven by its robust electronics manufacturing ecosystem and aggressive infrastructure expansion. Countries such as China, Japan, South Korea, and Taiwan have positioned themselves as epicenters for semiconductor innovation. For instance, China alone accounted for over 45% of global optoelectronic component production in 2024, with Gallium Phosphide as a core raw material in LED chips, photodetectors, and optical amplifiers. 

In Japan, the focus on high-end photonic sensors for automotive and medical imaging has increased Gallium Phosphide usage in research and commercial sectors. South Korea’s multi-billion-dollar investment in 5G and AI hardware further reinforces the region’s position in the global Gallium Phosphide Market. Taiwan’s foundry dominance in global chip production, including devices using compound semiconductors, adds substantial volume to Gallium Phosphide demand. 

 North America’s Gallium Phosphide Market Driven by Quantum Computing and Defense 

In North America, the Gallium Phosphide Market is being reshaped by strong federal investment in quantum technologies and national security applications. The United States, in particular, has made strategic commitments toward domestic semiconductor production, with Gallium Phosphide being prioritized for its potential in quantum dot arrays and high-frequency power systems. 

For instance, with over $52 billion allocated under the CHIPS Act, much of the funding is being used to enhance the capacity for compound semiconductor manufacturing, including Gallium Phosphide-based devices. The defense sector, which demands radiation-hardened, high-temperature materials for radar, missile guidance, and communication arrays, is increasingly relying on Gallium Phosphide as a substitute for traditional materials like silicon. 

 European Gallium Phosphide Market Strengthened by Clean Energy Mandates 

The Gallium Phosphide Market in Europe is seeing accelerated adoption, particularly in Germany, the United Kingdom, and France. Germany’s strong focus on automotive electrification has led to a rise in the use of GaP for LED lighting and onboard power systems. With over 30% of new car registrations being electric or hybrid vehicles as of 2024, the integration of Gallium Phosphide-based electronics in EV platforms is becoming standard. 

France’s renewable energy transition has fueled demand for high-efficiency solar modules utilizing Gallium Phosphide in tandem solar cells. The United Kingdom, on the other hand, is concentrating investments in fiber-optic communications, where Gallium Phosphide is essential for producing modulators and signal repeaters. Collectively, Europe’s Gallium Phosphide Market is thriving under policy frameworks that promote low-carbon technologies and advanced manufacturing. 

 Emerging Demand in Middle East, Africa, and Latin America 

Though currently smaller in scale, the Gallium Phosphide Market in regions such as the Middle East, Africa, and Latin America is growing steadily. In the Middle East, national infrastructure upgrades—particularly in Gulf countries—are incorporating smart lighting, solar installations, and high-speed telecom, where Gallium Phosphide plays a supporting role. 

In Latin America, Brazil and Mexico have begun adopting Gallium Phosphide for localized manufacturing of LED lights and telecommunication gear. These developments are supported by governmental subsidies for energy-efficient technologies. Africa’s adoption is being driven by off-grid solar solutions, where Gallium Phosphide-based solar cells are proving critical due to their efficiency and durability in harsh environments. 

 Market Segmentation by Application: Diversification Drives Gallium Phosphide Market 

The Gallium Phosphide Market is segmented into several high-impact application areas. The optoelectronics segment continues to lead, accounting for more than 35% of total demand. This includes use in visible-spectrum LEDs, which are fundamental in consumer electronics, commercial lighting, and digital signage. 

Telecommunications is the second-largest segment, with applications in optical modulators, switches, and fiber-optic networks. With data consumption expected to increase by 25% annually through 2030, Gallium Phosphide-based devices will remain essential for maintaining network performance. 

Renewable energy applications account for nearly 20% of the market, with rapid adoption of multi-junction solar cells in both commercial and defense sectors. Quantum computing, although still emerging, is expected to reach 10% of total Gallium Phosphide demand by 2030, fueled by pilot projects and breakthroughs in qubit processing technologies. 

 Market Segmentation by Form and Production Method: Tailored Solutions for Varied Needs 

In terms of physical form, the Gallium Phosphide Market is dominated by crystalline wafers, which are widely used in semiconductor fabrication. These wafers, typically grown through methods like Chemical Vapor Deposition (CVD) and Molecular Beam Epitaxy (MBE), offer high structural uniformity and electrical integrity. 

Thin films, comprising about 25% of market volume, are critical in lightweight optoelectronic devices and emerging micro-LED applications. Gallium Phosphide powders, though niche, are employed in research settings and in hybrid composite materials for aerospace and defense applications. 

Production capacity is now heavily skewed toward large-scale producers located in Asia Pacific, particularly China, which holds over 40% of global capacity. However, several new facilities in the U.S. and Europe are expected to come online by 2027, diversifying the supply landscape and reducing dependency on single-region sourcing. 

 Gallium Phosphide Price Trend: Volatility Influenced by Demand Surges and Supply Chain Constraints 

The Gallium Phosphide Price has experienced notable fluctuations over the past five years. In 2020, prices hovered around $1,800 per kilogram for electronic-grade material. By 2023, the Gallium Phosphide Price Trend showed a sharp upward movement, crossing $2,400/kg due to heightened demand from telecom and solar sectors and limited supply from key refining centers. 

For instance, temporary shutdowns of refineries in China during environmental audits created a bottleneck in raw gallium availability, pushing Gallium Phosphide prices upward by 18% in just one quarter. Furthermore, the spike in rare earth and high-purity gallium prices—driven by geopolitical tensions and trade restrictions—has exerted direct upward pressure on the Gallium Phosphide Price. 

 Forecast: Gallium Phosphide Price Trend Stabilizing Amid New Capacity Expansion 

Looking forward, the Gallium Phosphide Price Trend is expected to stabilize as more production facilities become operational and as recycling and recovery technologies for gallium improve. For example, several semiconductor firms in Europe are adopting closed-loop processes to extract gallium from used LED and PV modules, potentially reducing dependency on primary sources. 

From 2025 to 2030, Datavagyanik projects the Gallium Phosphide Price to settle in the range of $2,100–$2,500 per kilogram, assuming steady demand growth and moderate input cost inflation. However, in scenarios where quantum computing achieves commercial scalability ahead of schedule, a renewed price spike may occur due to sudden, large-scale demand influx. 

 Competitive Landscape: Innovation and Vertical Integration Reshaping Gallium Phosphide Market 

The Gallium Phosphide Market is becoming increasingly competitive, with established players adopting vertical integration strategies to ensure supply security and cost control. Leading semiconductor manufacturers are securing gallium refining assets and investing in proprietary GaP wafer fabrication technologies. This shift reduces reliance on third-party suppliers and enables custom tailoring of Gallium Phosphide to meet specific electrical or optical requirements. 

Meanwhile, startups focusing on nanotechnology and quantum photonics are entering the market, creating niche but high-value opportunities in research-grade and ultra-pure Gallium Phosphide formats. The result is a layered competitive field, where large-scale commodity producers and specialized innovators coexist, each driving growth in different market segments. 

 Outlook: Strategic Relevance of Gallium Phosphide in Global Tech Evolution 

The strategic importance of the Gallium Phosphide Market cannot be overstated. As the backbone of several transformative technologies—ranging from quantum processors to autonomous driving systems—Gallium Phosphide is no longer a secondary material. Its role is pivotal, and its demand profile mirrors the acceleration of global digitalization, energy transition, and defense modernization. 

Companies seeking to gain long-term strategic advantage are now building Gallium Phosphide into their core material sourcing strategy. Whether through joint ventures in wafer fabrication, or through IP development in photonic integration, stakeholders across the value chain are aligning for a future where Gallium Phosphide is indispensable. 

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Gallium Phosphide Market Dominated by Leading Semiconductor Giants 

The Gallium Phosphide Market is heavily influenced by a handful of globally recognized manufacturers, each playing a critical role in shaping product innovation, pricing, and global supply. These companies control the majority of the global capacity for high-purity Gallium Phosphide production, wafer fabrication, and optoelectronic device integration. The top manufacturers are investing aggressively in technology upgrades, proprietary growth techniques, and vertical integration to strengthen their position in the expanding Gallium Phosphide Market. 

 II-VI Incorporated: Diversified Product Portfolio Across GaP Applications 

II-VI Incorporated has emerged as a dominant player in the Gallium Phosphide Market, known for its robust capabilities in compound semiconductor manufacturing. The company offers a wide array of Gallium Phosphide wafers and substrates used in LED fabrication and photonic integrated circuits. Its product line includes advanced GaP-based photonic devices tailored for visible light communication, industrial sensors, and optical filters. II-VI’s vertically integrated structure, from raw material processing to epitaxial wafer production, allows it to control both quality and cost, securing a significant share of the Gallium Phosphide Market—estimated at around 18% globally. 

 Sumitomo Electric Industries: High-Precision Wafer Manufacturing Leader 

Sumitomo Electric Industries maintains a strong foothold in the Gallium Phosphide Market through its expertise in high-quality wafer production for LEDs and semiconductor lasers. The company specializes in crystal growth technology and supplies GaP substrates for both red-green LEDs and laser-based systems. Its GaP wafer series, often used in consumer electronics and automotive lighting, is renowned for uniformity and low defect density. Sumitomo holds approximately 12–15% share in the global Gallium Phosphide Market and continues to invest in advanced crystal growth methods such as low-pressure VPE to improve efficiency and yield. 

 AXT Inc.: Custom Substrate Solutions for Niche Applications 

AXT Inc. has established itself as a trusted supplier in the Gallium Phosphide Market, particularly in niche and specialty applications. The company provides GaP substrates tailored for advanced research, telecommunications, and photonic development. AXT’s proprietary manufacturing process emphasizes high-purity ingot pulling and slicing technologies, enabling the production of defect-free substrates for demanding optical environments. With a global Gallium Phosphide Market share of around 8–10%, AXT serves leading research institutions, photonic labs, and custom electronics manufacturers that require tailored material specifications. 

 Vital Materials Co. Ltd.: Dominant Asian Supplier of Gallium Compounds 

Vital Materials, based in China, plays a vital role in the Gallium Phosphide Market as one of Asia’s largest producers of gallium-based compounds and precursors. The company supplies high-purity gallium, phosphine gas, and related materials required for GaP wafer production. Vital Materials is strategically integrated into several local supply chains that support China’s LED and semiconductor device industries. With increasing demand from domestic GaP fabricators, the company’s material supply capacity has grown rapidly, contributing to its 10–12% market share. Its positioning within Asia’s fastest-growing markets provides a long-term strategic advantage. 

 Freiberger Compound Materials: European Precision in Gallium Phosphide 

Freiberger Compound Materials GmbH, headquartered in Germany, specializes in compound semiconductor wafers and has a dedicated product line for Gallium Phosphide substrates. The company is a preferred supplier to many European optoelectronic and quantum research programs. Their high-resistivity GaP wafers are used in both experimental and commercial-grade applications across photonics, defense, and integrated optical systems. Freiberger holds an estimated 6–8% of the Gallium Phosphide Market and is expanding its production lines to accommodate rising demand for high-performance GaP components in Europe’s automotive and aerospace sectors. 

 Gallium Phosphide Market Share: Consolidated Yet Competitive 

The global Gallium Phosphide Market remains moderately consolidated, with the top five players accounting for over 60% of total market volume. This concentration enables consistent quality standards and strong pricing control but also opens the door for smaller producers and regional players to cater to niche requirements. While large manufacturers dominate wafer production and bulk substrates, smaller firms are innovating in thin films, nanostructures, and GaP-based quantum dot formulations. 

Emerging players in India, South Korea, and Eastern Europe are beginning to challenge incumbents by offering customized Gallium Phosphide solutions, leveraging localized labor advantages and R&D partnerships. This dynamic is gradually shifting the competitive landscape, introducing fresh investment and accelerating innovation cycles across the industry. 

 Recent Developments Reshaping the Gallium Phosphide Market 

Several recent announcements and industry developments have highlighted the ongoing momentum in the Gallium Phosphide Market. In Q4 2024, II-VI Incorporated launched a new GaP-on-GaAs hybrid substrate series aimed at enabling ultra-high brightness LEDs for commercial lighting and automotive dashboards. This development is projected to enhance LED efficacy by 12% while reducing manufacturing costs by 15%. 

In March 2025, AXT Inc. announced a strategic partnership with a leading European research consortium to develop Gallium Phosphide wafers optimized for quantum photonic circuits. This initiative aims to commercialize lab-scale GaP technologies and scale them for production by 2026. 

Meanwhile, Sumitomo Electric Industries completed a $70 million expansion of its GaP wafer production facility in Osaka in February 2025. The upgrade includes automated growth chambers and AI-integrated inspection systems, expected to boost capacity by 40% and reduce production defects by half. 

Vital Materials revealed in January 2025 a three-year roadmap for increasing domestic gallium extraction and refining, reducing China’s dependency on imported gallium by nearly 60% by 2028. This vertically integrated approach is likely to influence Gallium Phosphide pricing in the region by mitigating raw material cost volatility. 

Finally, Freiberger Compound Materials signed a long-term supply contract in April 2025 with a major aerospace manufacturer to deliver GaP wafers for sensor and imaging systems, solidifying its role in defense-aligned applications of Gallium Phosphide. 

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Market Scenario, Demand vs Supply, Average Product Price, Import vs Export, till 2035

• Global Gallium Phosphide Market revenue and demand by region
• Global Gallium Phosphide Market production and sales volume
• United States Gallium Phosphide Market revenue size and demand by country
• Europe Gallium Phosphide Market revenue size and demand by country
• Asia Pacific Gallium Phosphide Market revenue size and demand by country
• Middle East & Africa Gallium Phosphide Market revenue size and demand by country
• Latin America Gallium Phosphide Market revenue size and demand by
• Import-export scenario – United States, Europe, APAC, Latin America, Middle East & Africa
• Average product price – United States, Europe, APAC, Latin America, Middle East & Africa
• Market player analysis, competitive scenario, market share analysis
• Business opportunity analysis

Key questions answered in the Global Gallium Phosphide Market Analysis Report:

• What is the market size for Gallium Phosphide in United States, Europe, APAC, Middle East & Africa, Latin America?
• What is the yearly sales volume of Gallium Phosphide and how is the demand rising?
• Who are the top market players by market share, in each product segment?
• Which is the fastest growing business/ product segment?
• What should be the business strategies and Go to Market strategies?

The report covers Gallium Phosphide Market revenue, Production, Sales volume, by regions, (further split into countries): 

• Asia Pacific (China, Japan, South Korea, India, Indonesia, Vietnam, Rest of APAC)
• Europe (UK, Germany, France, Italy, Spain, Benelux, Poland, Rest of Europe)
• North America (United States, Canada, Mexico)
• Latin America (Brazil, Argentina, Rest of Latin America)
• Middle East & Africa

Table of Contents:

Gallium Phosphide (GaP) Market:

1. Executive Summary

1.1 Overview of the Gallium Phosphide Market
1.2 Market Highlights and Emerging Opportunities
1.3 Key Growth Projections and Strategic Insights

2. Introduction to Gallium Phosphide (GaP)

2.1 Definition, Structure, and Material Properties
2.2 Unique Characteristics and Industrial Importance
2.3 Evolution of Gallium Phosphide in Semiconductor Applications

3. Global Market Size and Growth Prospects

3.1 Historical Market Trends (2019-2024)
3.2 Forecasted Market Growth and Revenue Outlook (2025-2035)
3.3 Demand-Supply Analysis and Market Expansion

4. Market Segmentation by Product Type

4.1 Gallium Phosphide Wafers and Crystals
4.2 GaP-Based LED and Optoelectronic Components
4.3 GaP-Based High-Frequency and Power Devices
4.4 Customized Gallium Phosphide Materials for Specialized Applications

5. Regional Market Analysis

5.1 North America: Adoption Trends and Investment Hotspots
5.2 Europe: Research Initiatives and Manufacturing Landscape
5.3 Asia-Pacific: Leading Production Centers and Market Growth Potential
5.4 Latin America: Trade Dynamics and Emerging Applications
5.5 Middle East & Africa: Market Penetration and Industrial Development

6. Market Influencers: Key Drivers, Challenges, and Opportunities

6.1 Rising Demand for Gallium Phosphide in Optoelectronics
6.2 Advances in Semiconductor Manufacturing Techniques
6.3 Cost and Scalability Barriers in GaP Production
6.4 New Innovations Driving Material Efficiency and Performance

7. Competitive Landscape and Industry Players

7.1 Global Market Share Analysis of Key Manufacturers
7.2 Strategic Partnerships, Mergers, and Acquisitions
7.3 Innovation-Driven Investments and R&D Focus
7.4 Patent Landscape and Proprietary Technologies

8. Application Landscape and Industry Utilization

8.1 Optoelectronics and High-Brightness LEDs
8.2 Photovoltaic and Solar Energy Applications
8.3 High-Speed Electronics and Data Transmission Devices
8.4 Emerging Use Cases in Display Technologies and Sensors

9. Pricing and Cost Structure Evaluation

9.1 Historical Pricing Trends and Influencing Factors
9.2 Manufacturing Cost Analysis and Market Viability
9.3 Future Price Predictions and Market Stability

10. Trade and Supply Chain Assessment

10.1 Global Supply Chain Overview and Key Suppliers
10.2 Import-Export Patterns and Trade Regulations
10.3 Logistics Challenges and Distribution Network Optimization

11. Innovations and Emerging Technologies in GaP

11.1 Advancements in Crystal Growth and Fabrication Techniques
11.2 Integration of GaP in Next-Generation Semiconductor Devices
11.3 Novel Applications in Advanced Microelectronics and Quantum Computing

12. Regulatory and Compliance Landscape

12.1 Industry Standards Governing GaP Production and Use
12.2 Environmental Impact and Sustainable Manufacturing Initiatives
12.3 Trade Policies and Compliance Across Key Markets

13. Business Strategies and Market Investment Insights

13.1 Market Entry Strategies for New Players
13.2 Growth Markets and Strategic Investment Areas
13.3 Recommendations for Industry Leaders and Policymakers

14. Future Market Forecast and Strategic Outlook (2025-2035)

14.1 Market Evolution and Disruptive Trends
14.2 Challenges and Opportunities in a Dynamic Industry
14.3 Key Areas for Technological Advancements and Business Growth

15. Conclusion and Key Takeaways

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