Semtech’s FX86E 5G RedCap Modem Presents a Tactical Approach to Maximize Immediate Opportunity

In 2Q 2026, Internet of things (IoT) network and terminal equipment manufacturer Semtech launched its FX86E 5G Reduced Capability (RedCap) modem for Industrial Internet of Things (IIoT) applications. This modem is part of Semtech’s Sierra Wireless brand of cellular products. Sierra Wireless already has a 5G RedCap module in its lineup, the EM8695. The EM8695 became available for sampling and testing in late 2024 and spent 2025 going through certification—starting with AT&T in January 2025, and notably with the Global Certification Forum in August 2025—before Semtech’s major distributor partners finally announced it being commercially available recently in 1H 2026. This is a timely reminder of how long it can take for new products based on new technologies to come to market in the IoT!

The EM8695 was a “first-generation” 5G RedCap product, using Qualcomm’s Snapdragon X35 chipset, which was the first ever 5G RedCap chipset launched back in February 2023, when the technology was still referred to as “New Radio (NR)-Light.” And it is this X35-based EM8695 module that Semtech is using inside its new FX86E industrial modem. The FX86E is a self-contained unit, for plug-and-play as an external peripheral to add 5G RedCap connectivity to unconnected hardware, or to update equipment using older cellular/non-cellular technology, either via Ethernet or micro-Universal Serial Bus (USB) connectors. The FX86E is, by default, as widely pre-certified as Sierra’s EM8695. That cellular modules are already network certified will always be one of their most powerful attributes to users, who do not need to certify downstream devices based on them—an expensive and time-consuming process.

The FX86E is part of a small “IoT Modem” sub-product line, in parallel to Sierra Wireless’ cellular modules, consisting of three models: the GL, the FX30, and now the new FX86E. The GL has Long Term Evolution (LTE) Cat-4, and Cat-M/Narrowband (NB)-IoT connectivity options. The FX30 features LTE Cat-1 or Cat-M/NB-IoT with 2G fallback. And the FX86E uses 5G RedCap with Cat-4 fallback. All three models have industrial-grade housings to withstand harsh environments and extreme temperatures. All can receive Firmware-Over-the-Air (FOTA) updates, and be supported by Sierra Wireless’ AirVantage connectivity, device, and application management platform. Plus, the FX86E includes Semtech's AutoConnect and AutoSim; the former automatically connects to a cellular network without instruction or configuration, and the latter selects the most suitable carrier for the current location from the International Mobile Subscriber Identities (IMSIs) found on the Subscriber Identity Module (SIM) card.

Module vendors do not typically offer products like this. The FX86E is more like the standalone modems offered by some industrial gateway and router vendors. It is also akin to the earliest cellular modules, which were always external peripherals, designed for retrofitting or for equipment too specialized for variants with built-in connectivity to exist. Indeed, the comparison is apt, as the FX86E is also targeted at smaller-scale rollouts than embedded cellular modules, to be more practical than modules for enabling private networks, and as a powerful add-on for devices where no native connectivity is present. Plus, being 5G RedCap provides the low latency and network slicing of 5G without the full 5G terminal equipment cost, and still with enough throughput for the needs of any IoT application.

The form factor of the FX86E is perfect for 5G RedCap at this current stage of the technology’s maturity. The most immediate 5G RedCap opportunity exists in the United States, where intense carrier competition is an active incentive to decommissioning LTE in favor of refarming to 5G as soon  as possible. The key impediments to 5G RedCap are: 5G Standalone (SA) availability, RedCap network software upgrades, and the continued presence of LTE; Cat-4 is the technology that 5G RedCap is specifically intended to replace. The first two are happening the soonest in countries actively planning their LTE sunsets and will be far more available globally through backward compatibility once carriers at large upgrade to The 3rd Generation Partnership Project (3GPP) Release 20 in a few years’ time. Nevertheless, the continued availability of LTE will still stall 5G RedCap, excepting IoT applications that most urgently need longevity and future-proofing.

There genuinely is emerging demand for 5G RedCap modules now, and given enough time, 5G will become the only option. There is also a current opportunity for ad-hoc upgrades: to retrofit devices too expensive to replace unless absolutely necessary, or where it is too soon for Original Equipment Manufacturers (OEMs) to switch manufacturing process and retool for 5G—especially when most customers do not need it yet. This is especially true considering the price premium for 5G RedCap over Cat-4, which is now being compounded by the global Random-Access Memory (RAM) shortage. The shortage is having a significant impact on the cost of 5G, which requires newer, higher speed RAM. So in the interim, a stop-gap aftermarket product that provides all the advantages of 5G but without the full logistics of redeveloping an IoT device is a tactical product offering for Sierra Wireless, maximizing its 5G RedCap opportunity today.

By being plug-and-play, the FX86E enables upgrades more easily and faster than finding a means to embed a module. It is purposely designed for use by IIoT OEMs, and Systems Integrators (SIs). It is also not so specialized as to be limited in its use, with Semtech citing a wide range of target applications from oil pipeline monitoring, to production machinery, agriculture, video surveillance, or wherever in Semtech’s words, “reliable connectivity and rapid deployment are essential.” “Many industrial IoT applications don’t need complex connectivity platforms - they need reliable connectivity, and they need it fast,” states said Larry Zibrik, Vice President (VP) of cellular modules at Semtech; and this is so that, “OEMs can focus on their applications, not connectivity infrastructure.”

With its LTE fallback, the FX86E modem works worldwide, coming in just one Stock Keeping Unit (SKU). And it can be deployed on public networks, private networks, Citizens Broadband Radio Service (CBRS), and Anterix B106 spectrum in the United States. Future-proofing remains the primary use for 5G RedCap and, ergo, the FX86E for now. Products of this type have not been launched frequently by Semtech, with sister devices, the FX30 and GL, coming to market back in 2017. The FX30 could be the closest we have ever come to a licensed-proprietary Low-Power Wide Area Network (LPWAN) combo device, having an expansion slot for various hardware extensions, including a LoRaWAN module. The FX86E might seem simple—an existing module in an industrial enclosure, bundled with managed services. But simple does not mean simplistic, simplicity means precisely what you need, exactly when you need it.