2016 was an interesting and exciting year in the RF semiconductor industry, particularly in the monolithic microwave integrated circuit (MMIC) technology domain. In speaking with customers and industry experts, it’s become clear that continued consolidation in the RF market has shaken up the MMIC product landscape in ways both significant and subtle.
There are fewer established MMIC vendors than there previously were, and some incumbent suppliers are quietly exiting the market and/or downsizing or obsoleting MMIC product lines and focusing their attention elsewhere. This is creating a void in a market previously serviced by a handful of proven, long-time MMIC suppliers.
In other pockets of the MMIC industry, new upstart vendors are seeking to fill this gap by rolling out slews of new MMICs. One way to look at this surge in offerings is that this offers customers more buying options in the short term. However, there is also a risk that customers can find themselves designing in MMICs that are at risk of being discontinued in short order if the product falls flat in the marketplace. As one of the few incumbent suppliers remaining, MACOM seeks to provide customers with that surety of supply in a fragmented market. Where others are jettisoning portfolios and products, MACOM is doubling down with a major investment in MMICs, building on our 60+ year heritage in RF technology.
At European Microwave Week (EuMW) 2016 we introduced 27 new MMIC products, rounding out our broadest portfolio of DC to 100GHz MMICs for application spanning from test and measurement, SATCOM and Aerospace and Defense to Wired Broadband and ISM. Every new product we introduced was developed in strategic consultation with our customers to ensure that we’re closely aligned to their product roadmaps.
Providing a reliable supply of superior products is only part of the story. We’re also working hard to make it easier for designers to get to market faster with their MMIC-based systems. Through our collaboration with X-Microwave, designers can quickly and easily simulate and prototype end-to-end RF systems with solderless, ‘building block’ flexibility using MACOM MMICs.
Looking ahead to 2017, the RF semiconductor market will surely see continued disruption, perhaps via further industry consolidation, perhaps in ways we didn’t anticipate. The International Microwave Symposium (IMS2017) will afford a great opportunity to survey the current state of the MMIC market, and assess RF vendors’ commitment to it. In the weeks and months that precede the event, you can expect to see a steady cadence of MACOM product announcements that expand our MMIC portfolio with high-performance, high value add solutions and affirm our strong, sustained investment in the MMIC product domain.
All financial guidance projections referenced in this post were made as of the publication date or another historical date noted herein, and any references to such projections herein are not intended to reaffirm them as of any later date. MACOM undertakes no obligation to update any forward-looking statement or projection at any future date. This post may include information and projections derived from third-party sources concerning addressable market size and growth rates and similar general economic or industry data. MACOM has not independently verified any information and projections from third party sources incorporated herein. This post may also contain market statistics and industry data that are subject to uncertainty and are not necessarily reflective of market conditions. Although MACOM believes that these statistics and data are reasonable, they have been derived from third party sources and have not been independently verified by MACOM.