Pulsed RF Power Semiconductors are Moving Upward as Defense Spending and Air Traffic Control Improvements Increase

Although growth for high-power Radio Frequency (RF) semiconductors for pulsed applications has been midway in the single digits for the last few years, 2018 has shown an uptick. First, let’s define what we mean by pulsed RF power semiconductors. In this case, it means commercial- and defense-related avionics using pulsed RF and sub-1 GHz, L-Band, and S-Band radar.

There are actually two segments that ABI Research has defined for these applications. One is for military and defense and the other is for commercial avionics and air traffic control. Both segments cover similar pulsed applications and frequencies (< 4 GHz).

The chart below shows the breakout for revenue among the four classes of pulsed high-power RF devices for 2017.

It is important to note that ABI Research categorizes both of these areas as “nondiscretionary,” in that the defense side of things must move forward, as a nation’s security is at stake; on the commercial/civilian side, air travel safety and the efficient running of the civilian air traffic system is a must as well.

There was an important event that occurred in 2018 for defense-related funding. The National Defense Authorization Act (NDAA) for Fiscal Year 2019was signed into U.S. law in August. This is a far-reaching funding mechanism for defense-related activities, operations, and systems and equipment for 2019. The total funding level is US$717 billion.

This will be especially important for defense electronics, which will see healthy increases at both the system and equipment level. Included in this funding will be new military sub-1 GHz, L-Band, and S-Band radar projects, along with upgraded transponder systems. The other extremely important aspect of this funding mechanism is that it is simply not another continuing resolution that in a sense has Band-Aided the issue on and off for several years. To have a solid funding plan in place will entice vendors to look at longer term programs and should give some stability to the entire process.

While the NDAA for 2019 is for U.S.-based defense spending, its effects will ripple worldwide as offshoots of many U.S.-based programs can drive foreign procurement as well.

As mentioned above, there are similarities between military and commercial avionics/air traffic control for avionics transponders, L-Band radar, and S-Band radar. The transponder side of things probably has the closest synergy with similar frequencies and power levels. In fact, most military transponders have to operate in a commercial environment as well, so these systems can communicate with the civilian air traffic control system.

The radar picture is similar but a bit different in some respects. Military L-Band and S-Band radar is used for tactical and battlefield systems to a great extent, while their air traffic control counterpart divides radar into sections—the S-Band primary search radar and the L-Band secondary radar that interrogates and receives flight and position information from aircraft. The frequencies used are similar. Finally, marine radars can use S-Band frequencies as well.

The Global Positioning System (GPS) is moving to become a more accurate and less system-intensive version of civilian aircraft navigation. While GPS is relatively ubiquitous today, communicating this information to air traffic control and other aircraft will require new or upgraded transponders and new ground stations. This new system, known as Automatic Dependent Surveillance-Broadcast (ADS-B), promises to add new pulsed RF power sockets in the future. The present system of L-Band and S-Band radar is still being upgraded and deployed worldwide, so those opportunities are still with us.

Tactical and Strategic Recommendations

These two market segments have both similarities and differences, but a unified approach to them would be the best course of action. The following specific recommendations are warranted as well:

• Carefully review potential and actual trade tariffs that are on the horizon. Many of these are buried in the fine print of tariff lists. For example, in the list of potential E.U. tariffs on U.S. products is a 50% tariff on microwave amplifiers. While this applies to all RF power segments, it is important to realize that the military and air traffic control pulsed RF power device segments are not immune.
• It is important (as ABI Research has mentioned before) to stake a position in gallium nitride (GaN). This technology will be driving S-Band radar and the other pulsed subsegments as well.
• Many vendors will be going after these two segments as wireless infrastructure winds down. Do not overestimate your potential share, and set expectations realistically.
• Any operating agreements or foreign investments (in both directions) will need to be fully vetted for internal and external modifying forces before proceeding. In some cases, it may make more sense to delay these international agreements until the trade situation quiets down.
• When selling or transferring potentially sensitive technology offshore make sure that compliance with export restrictions has been carefully reviewed. It is likely that regulators will review these with higher scrutiny. This can especially apply to pulsed RF power semiconductors, as regulators watch this class of product carefully.
• Be aware of current acquisitions, consolidations, and technical agreements that could reshape the industry. Two specific examples of each, respectively, are Wolfspeed’s (Cree) purchase of the RF power business of Infineon, and the GaN-on-silicon technical agreement between STMicroelectronics and MACOM.

The above is discussed in detail in a new market data report, High Power RF Semiconductors for Pulsed Applications (MD-PRPS-18) and a companion narrative in application note format (AN-4912).