Microwave components include microwave devices, also known as radio frequency devices, such as filters, mixers, and so on; It also includes multifunctional components composed of microwave circuits and discrete microwave devices, such as TR components, up and down converter components, and so on; It also includes some subsystems, such as receivers.
In the military field, microwave components are mainly used in defense information equipment such as radar, communications, and electronic countermeasures. Moreover, the value of microwave components, namely, the radio frequency component, is becoming increasingly high, belonging to the growth sub field of military industry; In addition, in the civil field, it is mainly used in wireless communication, automotive millimeter wave radar, and other fields. It is a sub field with strong demand for autonomous control in China’s upstream and midstream basic devices and technologies. There is a very large space for military civilian integration, so there will be relatively many investment opportunities in microwave components.
First, briefly report the basic concepts and development trends of microwave components. Microwave components are used to achieve various transformations of microwave signals such as frequency, power, and phase. The concepts of microwave signals and radio frequencies are basically the same, which are analog signals with relatively high frequencies, typically ranging from tens of megahertz to hundreds of gigahertz to terahertz; Microwave components are generally composed of microwave circuits and some discrete microwave devices. The direction of technological development is miniaturization and low cost. The technical approaches to implementation include HMIC and MMIC. MMIC is to design microwave components on a semiconductor chip, with an integration level of 2-3 orders of magnitude higher than HMIC. Generally, one MMIC can achieve one function. In the future, multifunctional integration will be achieved, and ultimately all system level functions will be implemented on one chip, Has become known as the radio frequency SoC; HMIC can also be seen as a secondary integration of MMIC. HMIC mainly includes thick film integrated circuits, thin film integrated circuits, and system level packaging SIP. Thick film integrated circuits are still relatively common microwave module processes, with the advantages of low cost, short cycle time, and flexible design. The 3D packaging process based on LTCC can further realize the miniaturization of microwave modules, and its application in the military field is gradually increasing. In the military field, some chips with a particularly large amount of usage can be made in the form of a single chip, such as the final stage power amplifier in the TR module of a phased array radar. The amount of usage is very large, and it is still worthwhile to make a single chip; For example, many small batch customized products are not suitable for monolithic production, and still rely mainly on hybrid integrated circuits.
Next, let’s report on the military and civilian markets of microwave components.
In the military market, the value of microwave components in the fields of radar, communications, and electronic countermeasures has accounted for more than 60%. We have estimated the market space of microwave components in the fields of radar and electronic countermeasures. In the field of radar, we have mainly estimated the radar output value of the most important radar research institutes in China, including 14 and 38 of China Electronics Technology, 23, 25, and 35 of China Aerospace Science and Industry, 704 and 802 of Aerospace Science and Technology, 607 of China Aerospace Industry, and so on, We estimate that the market space in 2018 will be 33 billion, and the market space for microwave components will reach 20 billion; Electronic countermeasures mainly consider 29 institutes of China Electronics Technology, 8511 institutes of Aerospace Science and Industry, and 723 institutes of China Shipbuilding Heavy Industry. The overall market space for electronic countermeasures equipment is around 8 billion, with the value of microwave components reaching 5 billion. “We have not considered the communications industry for the time being because the market in this industry is too fragmented. We will continue to conduct in-depth research and supplement later. The market space for microwave components in the radar and electronic countermeasures fields alone has reached 25 billion yuan.”.
The civil market mainly includes wireless communication and automotive millimeter wave radar. In the field of wireless communication, there are two markets: mobile terminals and base stations. The RRUs in a base station are mainly composed of microwave components such as intermediate frequency modules, transceiver modules, power amplifiers, and filter modules. The proportion of microwave components in the base station is increasingly high. In 2G network base stations, the value of radio frequency components accounts for about 4% of the total base station value. As the base station moves towards miniaturization, radio frequency components in 3G and 4G technologies gradually increase to 6% to 8%, and the proportion of some base stations can reach 9% to 10%. The value of RF devices in the 5G era will further increase. In mobile terminal communication systems, RF front-end is one of the core components. RF devices in mobile terminals mainly include power amplifiers, duplexers, RF switches, filters, low noise amplifiers, and so on. The value of RF front-end continues to increase from 2G to 4G. The average cost in the 4G era is about $10, and it is expected that 5G will exceed $50. The automotive millimeter wave radar market is expected to reach $5 billion in 2020, with RF front-end accounting for 40% to 50% of the market.
Military microwave modules and civilian microwave modules are interlinked in principle, but when it comes to specific applications, the requirements for microwave modules vary, resulting in a separation of military and civilian components. For example, military products generally require higher transmission power to detect targets farther away, which is the starting point of their design, while civilian products pay more attention to efficiency; In addition, there are also differences in frequency. In order to resist interference, the working bandwidth of the military is becoming higher and higher, while in general, it is still narrowband for civilian use. In addition, civilian products mainly emphasize cost, while military products are not sensitive to cost.
With the development of future technology, the similarity between military and civilian applications is increasing, and the requirements for frequency, power, and low cost are converging. Take Qorvo, a well-known American company, as an example. It not only serves as a PA for base stations, but also provides power amplifiers, MMICs, etc. for military radars, and is used in shipborne, airborne, and land-based radar systems, as well as communication and electronic warfare systems. In the future, China will also present a situation of military civilian integration and development, and there are significant opportunities for military civilian conversion.
Post time: Mar-28-2023