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RTX's Arm Gets a Contract to Develop Ultra-Wide Bandgap Semiconductors

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RTX Corporation’s (RTX - Free Report) unit, Raytheon, recently received a three-year contract from the Defense Advanced Research Projects Agency to create ultra-wide bandgap semiconductors (UWBGS) using new diamond and aluminum nitride materials. These new semiconductors are expected to improve power delivery and heat management in various electronic devices, including sensors.

Details of the Contract

The contract will be completed in two phases. In the first phase, the Raytheon Advanced Technology team will develop thin films made from diamond and aluminum nitride, which will be used in electronic devices. The second phase will focus on improving this technology for larger wafers that can be used in sensors. The work for this contract will take place at Raytheon's facility in Andover, MA.

Importance of RTX’s UWBGS

UWBGS has many advantages over traditional ones. The semiconductors can create compact and powerful radio frequency switches, limiters and amplifiers. Their high thermal conductivity means they can work well at higher temperatures and in tough environments. This makes the semiconductors very reliable for various applications.

The latest contract entails the development of UWBGS for devices that can enhance radar and communication systems. These advanced semiconductors will support capabilities like cooperative sensing, electronic warfare and directed energy systems. They will also be important for high-speed weapon systems, like hypersonics, where performance is crucial.

The potential of UWBGS to improve military and defense technology will likely change how advanced electronics are used and strengthen the U.S. military's capabilities. With continued advancements, the future of semiconductor technology looks promising.

This is likely to have prompted Global Market Insights to forecast a compound annual growth rate of more than 8% for the global military and defense semiconductor market during the 2024-2032 time period.

Prospects for RTX’s Peers

Other companies that are likely to enjoy the perks of the expanding global semiconductor industry have been discussed below.
 
Lockheed Martin Corporation (LMT - Free Report) : The company teamed up with GlobalFoundries in June 2023 to enhance U.S. semiconductor manufacturing. This collaboration focuses on improving the security and resilience of supply chains for national defense systems by advancing chip technologies like 3D integration and gallium nitride on silicon.
 
Moreover, in April 2024, it was announced that Lockheed Martin together with Intel Corporation and Altera, an Intel Company, will work to support the Stimulating Transition for Advanced Microelectronics Packaging program. Under this joint venture, LMT aims to develop a low-size, weight and power (SWaP), Sensor Open Systems Architecture aligned airborne electronic defense system, utilizing Altera’s Multi-Chip Package for expected use on the MH-60R multi-mission helicopter.

Northrop Grumman Corporation (NOC - Free Report) : The company has been offering a wide range of trusted foundry and semiconductor services that deliver high-performing and reliable microelectronics for more than 50 years.

In particular, NOC operates a leading semiconductor foundry at Space Park, specializing in III-V compound semiconductors. The foundry designs and manufactures advanced microelectronics for various applications, including satellite communications and commercial systems like smartphones.

The Boeing Company (BA - Free Report) : It is expanding its semiconductor capabilities through a partnership with the Korea Evaluation Institute of Industrial Technology and the Korea Institute for Advancement of Technology. This collaboration focuses on developing advanced semiconductor technologies for aerospace applications.
 
By integrating cutting-edge semiconductor innovations into aircraft systems, Boeing aims to enhance the performance, reliability and efficiency of its aerospace products.

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