Technical Insight
Signal forms RF/microwave module venture (GaAs News)
Signal Technology Corporation has entered into a strategic initiative with Northrop Grumman and Vitesse to leverage its defense-oriented wireless RF and microwave module technology into high-volume commercial markets for mobile phones and emerging wireless appliances. One of the major aims is to provide entire RF front-end modules in line with the shorter design lead times required by handset manufacturers. As part of the venture, Signal Technology has entered into a 10 year license agreement that provides access to Northrop Grumman s 4 inch GaAs foundry processes. These include a PHEMT process with 0.25 m T-gates for circuits in the 140 GHz range, and HBT processes employing 2.0 m emitters for X- and Ku-band operation (up to 20 GHz). Northrop Grumman will also supply Signal with devices for up to 10 years, to support the company s growing line of wireless access products. In return, Northrop Grumman will conditionally receive a total of 1 million shares or 10% of Signal s common stock. Another key aspect will be the establishment of a joint technology working group to facilitate technology transfer to Signal, and also to provide Northrop Grumman s defense customers with access to a low-cost commercial production base. Signal Wireless Group, headquartered in Danvers, MA, develops RF radio subsystems for fixed broadband wireless applications, in addition to switching/ combining components and subsystems for digital PCS/cellular applications. On the defense side, Signal develops and manufactures RF, microwave and power conversion products for communications networks, electronic countermeasures, missiles, radar, intelligence and guidance systems. "Offering GaAs module technology to cell phone makers is in line with Signal s growth strategy, which is to leverage our defense electronics heritage into the penetration of commercial wireless communications markets," said George Lombard, Signal s chairman and CEO. "With Jim DiLorenzo and his team s background in GaAs cell phone products, we believe it is an opportune time for Signal to apply this RF technology to 2.5G and 3G wireless hand-sets, as well as emerging wireless appliance markets." Shared expertise with Vitesse To date, Signal has employed its design capabilities to supply custom GaAs circuits largely for low-volume defense applications. The exclusive agreement with Vitesse will provide Signal with a high-volume supply of RFIC and MMIC wafers, and also provide Vitesse, which produces digital ICs, access to analog design expertise and Signal s customer base. The deal includes the transfer of Northrop Grumman s GaAs technology to Vitesse s 6 inch GaAs wafer line, and the production of Signal s MMIC de-signs for a period of 10 years. Vitesse will conditionally receive 500 000 shares or around 5% of Signal s common equity. "From the Vitesse standpoint, there is great synergy with Signal Technology," said Vitesse CEO Lou Tomasetta. "By offering Signal our volume manufacturing expertise, this agreement offers us a route into wireless markets. We will gain from Signal s customer base and analog design experience, which is an area where Vitesse has less experience. Looking ahead, we see no technical roadblocks, and expect to have prototype parts that Signal can sample to its customers by the summer of 2002," added Tomasetta. "We believe the wireless telecom market is poised for a rebound in terms of both infrastructure build-out and handheld appliance demand," added Signal s president and COO, Jim DiLorenzo. "In addition, creating the Northrop Signal joint technology working group assures us of the earliest possible access to first-to-market design-in of evolving technologies vital to innovative products. These strategic advantages will position Signal to capture a meaningful share of the commercial market for wireless appliance components when worldwide demand growth resumes."
