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A&D Industry - RF Opportunity

Applied Project - Arizona State University

MS in Management of Technology

Nirav Shah�Kashyap Pandit

Prof. Dr. Andrea Cherman

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Aerospace & Defense Industry

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Opportunity?

2025 DoD Budget

$852.2B

Department	2025 Budget Procurement ($ in billions)
Army	25
Navy	77
Air Force	59
Defense-Wide	5.8

Source: Aerospace & Defense - June 2024, CFRA

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Brief Overview - A&D Industry in United States

U.S. defense growth ~ 7.1%

$805.3B (2023)

$751.3B (2022)

Source: https://federalnewsnetwork.com/defense-main/2024/08/senate-approps-passes-defense-bill-blowing-past-budget-caps/

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Key Contractors

Source: U.S. Department of Defense

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Source: Defense News

2%

3%

9%

6%

12%

8%

16%

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Market Analysis

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RF GaN Forecast

Expected to grow from $1.1B in 2023 to $1.9B in 2029

Source: Yole Research

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RF GaN Segment Forecast

Defense is the main segment�
GaN-on-SiC is still the primary platform �
Applications: Defense radar, electronic warfare, and defense communication are the primary growth drivers

Source: Yole Research

GaN-on-SiC technology remains the preferred option for 5G telecom and defense due to its high power density and thermal conductivity��Telecom Infrastructure: Valued at $522 million in 2023, it is expected to grow to $894 million by 2029. The global 5G rollout is driving the transition from RRH to AAS, increasing the number of RF lines per base station. GaN-on-SiC technology leads this shift.

Mobile: Despite a decline in overall smartphone sales, 5G phones are seeing higher volumes. GaAs dominates sub-7GHz PAs, but GaN could enter the mobile market by 2028-2029, particularly for new frequency bands like FR3.

Defense: The defense GaN RF market is expected to grow from $513 million in 2023 to $817 million by 2029. Military radar and electronic warfare are primary growth drivers, with research into GaN-on-diamond substrates.

SatCom: GaN devices, mainly used in ground-based VSAT systems, are gaining share from GaAs. Increased satellite launches may boost GaN RF adoption in LEO satellites.��

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RF GaN Ecosystem

Source: Yole Research

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RF Amplifier Market

NXP Semiconductors is a significant player in the power amplifier market�
NXP’s portfolio includes a range of amplifiers for applications in automotive, industrial, and consumer electronics

8.5B (2023)

Global RF components �market size - 37.26 billion in 2023
35% share

Source: Grand View Research

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RF Amplifier Market

25.3B (2032)

8.5B (2023)

CAGR 12.9%

(Compound Annual Growth Rate)

Source: Grand View Research

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RF Amplifiers in Aerospace and Defense

25.3B (2032)

8.5B (2023)

Radar

Missile Systems

Electronic Warfare

Satellite Communication

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Power Amplifiers in Defense Applications

Applications	Radar	Electronic Warfare	Defense Communication	Missile Systems
Frequency Bands	L (1-2 GHz)� S (2-4 GHz)� C (4-8 GHz)� X (8-12 GHz)	VHF to UHF (20-1000 MHz)� L to S (1-4 GHz)� C to X (4-12 GHz)� Ku (12 GHz - 18 GHz)�	HF (3-40 MHz)� VHF (30-300 �GHz)� UHF (300 Mhz- 3 GHz)� L (1-2 GHz)� S (2-4 GHz)	S (2-4 GHz)� C (4-8 GHz)� X (8-12 GHz) Ku (12 GHz - 18 GHz)� Ka (26 GHz - 40 GHz)�

GaN 5

GaN 6/7

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Market Size By Application

Source: U.S. Department of Defense

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Source: U.S. Department of Defense

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DoD Missile Contracts - Defense Missiles

Source: U.S. Department of Defense

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DoD Missile Contracts - Offense Missiles

Source: U.S. Department of Defense

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Competitor Analysis

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Competitors

Source: Yole Research

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Overview - Qorvo and Macom

	RF and power technologies GaN (0.4um, 0.25um, 150nm) GaAs (0.5um, 0.25um, 150nm, 90nm) Revenue: $3.5B (2023) HPA revenue increased $44.5M YoY (23-24)
	HPA, mixed-signal, and optical applications GaN (0.5um, 0.25um) GaAs (0.5um, 0.25um) RevenueL $648M (2023) I&D Revenue $22.8M YoY (22-23)

Source: Qorvo SEC Filings, Macom SEC Filings

DoD - Category 1A

Trusted Foundries

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Source: US DoD

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Partnerships/Acquisitions

Company	Partnerships/Acquisitions
	Anokiwave - $83M Custom MMIC - $96M D&A, SATCOM, and 5G applications
	OMMIC SAS - $38.5M LNAs, mixers, attenuators, phase shifters, and switches - EU Wolfspeed (RF) - $135M 100mm GaN fab

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Qorvo - Products

Categories	Freq Range	Technology	Applications	No. of Products
Gain Block Amps	1-6 GHz	E-pHEMT process	Communications	2
Infrastructure Power Amps	1-2 GHz	-	Comms/Warfare	2
High Freq Amps	6-10 GHz	GaN	Comms/Radar/Jammer	18
LNA	5 MHz-10 GHz	MMIC, GaN, E-pHEMT process	Comms/Radar/Satcom/Warfare	49
Low Phase Noise Amps	2-10 GHz	GaAs MMIC	Comms/Radar/Satcom/Warfare	11
Power Amps	30 MHz-10 GHz	GaN	Comms/Radar/Satcom/Warfare	22
Spatium Amps	2-10 GHz	GaN	Comms/Radar/Warfare	2

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Macom - Products

Categories
Gain Block Amps
CATV
Distributed Amplifiers
Hybrid Amplifiers
Linear Amplifiers
Low Noise Amplifiers
Power Amplifiers

GaN on Sic, GaN on Si, GaAs MMIC

Application	Type	No.of Products
Communication	Switches	77
	Power amplifiers	27
	Driver amplifiers	35
	GaN PMIC	2
	LNA	19
Electronic Warfare	Power amplifiers	22
	Driver amplifiers	22
	Gain block amplifier	22
Radar	Driver amplifier	93
	Power amplifier	120
	LNA	70

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ROI v/s Effort

ROI

Effort

S - AN/SPY-6

X - AIM-120 AMRAAM

S - AN/TPQ-53

L - AN/PRC-158

L - AN/PRC-148 JEM

Defense Communication

Radar

Missile

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Contractor Interviews

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Foundry onshore or offshore?
Would like to have at least two supplier sources
Cost is key - pricing determined on a contract basis
Should have a long history of product-making
In need of higher frequency RF products (mmWave for inflight entertainment and phased arrays)
For price: Balance is key

RAW MATERIAL = PACKAGE = TEST

Senior Technical Manager (RF)

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Boeing, Airbus, Lockheed Martin, etc look for system level, board level, and component level suppliers
Key factors - cost, schedule, functional performance (multiple levels of integration), quality, risk
Decision-making:

Engineering | Program Management | Supply Chain

Each product requires different certifications
Build for 30 years

Ex-System Architecture Lead, EE

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Next Steps

Capture specification information from contractors via RFI
Identify electronics components’ cost in applications
Timeline based on capabilities and RFI to create a long-term Business plan including supply chain, inventory management
Research - Future applications with potential market capture

Electromagnetic weapons like DEW
Micro-Nuclear power plant

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Next Steps

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Thank You

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References

[1] Leroy, S. (2024, June 6). From power to RF: GaN’s journey to a US$4.35B market by 2029. Yole Group. https://www.yolegroup.com/strategy-insights/from-power-to-rf-gans-journey-to-a-us4-35b-market-by-2029/

[2] Yole Group - Follow the latest trend news in the Semiconductor Industry. (2023, December 12). Yole Group. https://www.yolegroup.com/product/report/rf-gan-2024

[3] Yole Group - Follow the latest trend news in the Semiconductor Industry. (2023b, December 12). Yole Group. https://www.yolegroup.com/product/report/rf-gan-2023/

[4] Radio Frequency Components Market Size, Share & Trends Analysis Report By Product (Power Amplifier, Filters, Duplexer), By Application (Consumer Electronics, Military, Automotive), By Region, And Segment Forecasts, 2024 - 2030. (n.d.). https://www.grandviewresearch.com/industry-analysis/radio-frequency-rf-components-market

[5] SNS insider, Strategy and Stats. (n.d.). RF Power Amplifier Market: Trends, Growth & Key Insights 2024. SNS Insider | Strategy and Stats. https://www.snsinsider.com/reports/rf-power-amplifier-market-1339

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References

[6] U.S. Department of Defense. (n.d.). Contracts. https://www.defense.gov/News/Contracts/

[7] Top 100 | Defense News, News about defense programs, business, and technology. (n.d.). https://people.defensenews.com/top-100/

[8] Qorvo SEC Filings, Macom SEC Filings

[5] FY2025 US DoD Budget Request https://federalnewsnetwork.com/defense-main/2024/08/senate-approps-passes-defense-bill-blowing-past-budget-caps/

[6] DoD Missiles Procurement 2020-24 https://www.csis.org/analysis/cost-and-value-air-and-missile-defense-intercepts

[7] CFRA A&D Equity report June 2024

[8] Trusted Access Program Office https://www.acq.osd.mil/asds/dmea/tapo/trusted-supplier-programs.html

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References

[9] AESA - https://www.globenewswire.com/news-release/2022/05/25/2450308/28124/en/Global-Electronically-Scanned-Array-Market-to-2026-Rise-and-Adoption-of-Unmanned-Aerial-Vehicles-Presents-Opportunities.html

[10] RF GaN - https://www.yolegroup.com/press-release/driven-by-military-applications-and-5g-telecom-infrastructure-gan-rf-continues-growing/

[11] EW - https://www.fortunebusinessinsights.com/electronic-warfare-market-103290

[12] OHT - https://www.cognitivemarketresearch.com/over-the-horizon-radar-market-report

[13] Radio Frequency Components Market Size, Share & Trends Analysis Report By Product (Power Amplifier, Filters, Duplexer), By Application (Consumer Electronics, Military, Automotive), By Region, And Segment Forecasts, 2024 - 2030. (n.d.). https://www.grandviewresearch.com/industry-analysis/radio-frequency-rf-components-market

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Space Vehicle & Missile Industry

(2023-24)

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End Customers/DoD Contractors

Source: Aerospace & Defense - June 2024, CFRA