The Ga vacancy mediated microstructure evolution of (Ga,Mn)As during growth and post-growth annealing is studied using a multi-scale approach. The migration barriers for the Ga vacancies and substitutional Mn together with their interactions are calculated from first principles, and temporal evolution at temperatures ranging from 200 to 350• C is studied using Lattice Kinetic Monte Carlo simulations. We show that at the typical growth and annealing temperatures (i) gallium vacancies provide the diffusion mechanism for substitutional Mn and (ii) in 10-20 h the vacancy mediated diffusion of Mn promotes the formation of substitutional clusters. Clustering reduces the Curie temperature (TC), and therefore the Mn clustering combined with the fast interstitial Mn diffusion explains the experimentally observed twofold annealing behavior of TC.PACS numbers: 75.50.PpUnderstanding of microstructure evolution during growth and post-growth annealing is one of the key issues in materials science. The microstructure and its inhomogeneities largely determine the material properties, including the basic phase transition points for materials ranging from high temperature superconductors to diluted magnetic semiconductors [1,2]. In the ongoing quest for room temperature semiconductor spintronics materials (Ga,Mn)As has been one of the main candidates since the observation of the relatively high Curie temperature T C of 110 K [1]. Typically the (Ga,Mn)As thin films, where Mn substitutionally replaces Ga atoms, are grown by means of low-temperature molecular beam epitaxy, which also leads to the formation of As antisites (As Ga ) [3] and interstitial Mn (Mn i ) [4,5]. The substitutional Mn (Mn Ga ) act as acceptors, providing spinpolarized holes that mediate the ferromagnetic coupling, while the As Ga and Mn i as donors hamper the ferromagnetism by compensating holes. Post-growth annealing of a few hours is an efficient method to remove the interstitial Mn i and thus increase T C [6,7,8,9]. However, extended annealing at temperatures around 250• C for ten hours or longer reduces T C again [6,7,8], and annealing at higher temperatures leads to a more swift lowering of T C [8]. This twofold behavior clearly indicates that besides the Mn i out-diffusion another yet unknown microstructure evolution process takes place. At present, the nature of this process and the mechanism underlying this evolution is not understood.In this Letter we show that the mechanism behind the long-term microstructure evolution is gallium vacancy (V Ga ) mediated Mn Ga diffusion on the Ga sublattice. We also show that this diffusion leads to Mn clustering, which reduces T C [10,11]. Although the formation of Mn Ga clusters has been shown to be energetically * Electronic address: hra@fyslab.hut.fi favorable [11,13,14,15], it requires an abundance of mobile gallium vacancies. The recent discovery of rather high gallium vacancy (V Ga ) concentrations in (Ga,Mn)As up to 10 18 cm −3 [16] gives us good reason to consider this mechanism plausible, but the mobilities...