In an increasingly global marketplace what defines the European microwave industry? What technologies are at the forefront? Where is the potential for growth and development? And can Europe compete with the boom of activity in developing economies?
Globalisation — a much used term — is a fact of economic life. But it applies as much to technological and industrial development as it does to economic and social process. Widespread market-led reforms and the removal of trade barriers have in turn underpinned a massive increase in the speed and ease of information transfer, foreign investment and partnerships everywhere. This ‘expertise explosion’ is impacting on most industries and the RF and microwaves sectors are no exception.
Against this background how is the European microwave industry faring in the worldwide marketplace? Can and should it compete with the low cost, large scale production emanating from China, other Asian markets and emerging economies such as India? In Europe what technologies are at the fore? How is it adapting to new global pressures? And what are the drivers shaping the future?
These topics will certainly be featured at this year’s European Microwave Week (EuMW) in Paris. In advance, Microwave Journal has capitalised on its unique access to the conference chairmen, academic contributors and key industrial players to try to provide some answers to these questions. The EuMW programme itself provides probably the best framework available shaped by its four individual conferences: the European Microwave Conference (EuMC), the European Conference on Wireless Technology (ECWT), the Gallium Arsenide and other Compound Semiconductors Application Symposium (GAAS®) and the European Radar Conference (EuRAD).
Each sector is preoccupied with its own key issues and agendas in terms of sector growth, market segmentation and technology development:
- RF and Microwaves – the trend is towards the development of new architectures and materials, together with greater integration of components, improved packaging and the reduction of size and weight.
- Wireless Technologies – will 3G fulfill early promise? Will an evolving technology emerge from the pack to dominate the marketplace?
- Semiconductors – new materials are finding their niche for microwave and millimetre-wave applications along with new developments like nanotechnologies.
- Defence – microwave technologies are being utilised to counter new threats and commercially developed measures are being adopted.
In this report, the individual conference chairmen each present an overview of their market sectors and executives whose companies play a key role in determining the direction and prosperity of the European microwave industry provide a commercial perspective in the ‘company survey’. Presenting a broader view, Microwave Journal has canvassed companies, large and small, across the globe with an active interest in the European microwave market.
First, though, in order to provide a context for these opinions let’s consider the political, technological and commercial environment in which the European microwave industry is operating.
European Perspective
The dynamic of the European RF and microwaves industry has changed dramatically since the height of the telecoms/Internet boom at the turn of the century. Volume production, in particular, has transferred from Western Europe, with its high labour and production costs, to more economically viable locations in Central and Eastern Europe and the Far East. However, despite this migration, according to a recent report published by Reed Electronics Research and distributed by In-Stat, electronics output in Western Europe in 2004 was valued at €200 B, where lower volume, high mix products will continue to be manufactured, creating opportunities throughout the supply chain in particular for small to medium-sized CEMs and distribution.
It also predicts that the slowdown in the market experienced in the early part of 2005 will be relatively short lived. Growth will gain momentum in the second half of the year, with the Western European electronics market expected to show relatively modest growth of 1.7 percent in 2005. With growth accelerating in 2006 and 2007 the market is forecast to reach €280 B by 2008.
In the past the focus has been mainly on the prosperity of Western Europe. Now, however, both practically and geographically, a broader view has to be taken with the European market covering 25 countries since the enlargement of the European Union in May 2004. Of the new members Poland, the Czech Republic and Hungary have established production centres and significant regional and global markets while others are looking for opportunities to expand their industries.
Just as the East and West need to work together and cooperate, so too do the academic and industrial communities. The first major step towards achieving this was taken in 2000 when the Lisbon European Council Summit set an objective to ‘make the European Union the most competitive and dynamic knowledge-based economy in the world by 2010’. In practice this means focusing on community-wide investment in research and the improvement of innovation and entrepreneurship to increase competitiveness. A major constituent of this initiative has been the 6th Framework Programme, which aims to eliminate the duplication and the dissipation of resources and effectively and efficiently identify, organise and structure European research, funding and commercial collaboration.
A prime instrument has been the European Networks of Excellence (NoE) that have been established for key areas of research and innovation. The result has been integrated projects that merge both academic research institutions and companies to improve the innovation and the competitiveness of European industry. The RF and microwave industry has been a beneficiary with numerous NoEs relating to the industry.
Additionally, the latest European Commission initiative announced earlier this year is the Competitiveness and Innovation Framework Programme (CIP), to run from 2007 to 2013 with a budget of €4.2126 B, with the aim of boosting Europe’s competitiveness and innovation. It will comprise three sub-programmes: the Entrepreneurship and Innovation Programme, the Information and Communication Technology (ICT) Policy Support Programme, and the Intelligent Energy — Europe Programme. All of which are relevant to the RF and microwave industry.
The CIP will address both technological and non-technological aspects of innovation. With respect to the former, it will focus on the downstream parts of the research and innovation process. More specifically, it will promote innovation support services for technology transfer and use, projects for the implementation and market take-up of existing new technologies in fields like ICT, energy and environmental protection, as well as the development and coordination of national and regional innovation programmes and policies.
Other Pan European initiatives of note include a joint European MoD project on GaN technology and Galileo, the European global positioning system, which is stimulating activity in satellite communications technologies.
RF & Microwaves
In the light of the downturn in the telecommunications market it is easy to forget the evolution in technology that has brought cellular mobile access to billions worldwide, enabled ubiquitous mobile communications and facilitated the transition to a tetherless society. Telecom still drives much RF and microwave development. One emphasis is in the production of output amplifiers with more bandwidth, power, efficiency and linearity, and in more general terms, the push is for greater integration of components, improved packaging and the reduction of size and weight. New architectures will integrate the design of amplifiers, filters, and antennas, and couple this with digital signal processing (DSP) technology. Work is in progress to develop frequency agile materials, incorporate novel antenna designs and initiate high powers from solid-state sources in order to enable frequencies up to 90 GHz, supporting base station operations and point-to-point communications.
Away from telecom, imaging is becoming an increasingly promising application of RF and microwave technology, in medical, military and security applications. In particular, millimetre-wave imaging is a relatively unexplored area that images objects using their black body radiation with tissue penetration of just a few millimetres. A subject featured in the conference programme is Terahertz imaging, which is viewed as a safe and low cost alternative to medical imaging using x-rays with the potential for extending diagnostic range.
Homeland security is also a growth market for microwave components. In particular, the need to increase border security will result in new opportunities for sensors and will provide opportunities for the microwave sub-system suppliers. The need to inspect freight and detect movement of radioactive material is resulting in an increased requirement for scanning machines too.
Finally, progress is being made with regards to silicon-based microwave electronics and the development of new materials such as metamaterials, supraconductors, EBG, CNT, LCP, etc.
Wireless Technologies
When trying to identify future trends the wireless sector is perhaps the one where there is most potential and where discernible progress is being made. However, it is also one that has seen false dawns and over hype in the past. So, realistically what are the new developments that are happening now and that are likely to shape the future?
Current estimates indicate that the total number of European wireless subscribers will grow to over 300 million in 2007, when wireless systems will account for around half of the telecommunications market. By this time it is forecast that the vast majority of mobile handset sales will be replacement handsets with significant investment and growth in base station infrastructure as companies compete to achieve better coverage.
Since the selling off of 3G licenses for huge sums the reality of its implementation has not matched original expectations. Delays in the mass roll-out of 3G has seen other competitive technologies emerge and instilled doubts as to its ability to deliver services that consumers want at prices they are prepared to pay. In Europe, 2004 did not see the 3G take-up that telcos and operators promised; however, 2005 has seen some operators introduce services to boost subscriber numbers.
This year will see global 3G subscriber numbers pass through the 50 million mark, still under three percent of the total mobile headcount around the world because 2G is still continuing to make significant impact particularly in developing countries. The aggregate 3G numbers are in turn split between many operator groups. In July Vodafone announced that it has 3.25 million 3G subscribers worldwide, predominantly in Europe and North America, while increasing its focus on Japan. Also, 3, Europe’s largest 3G network with over seven million customers in the continent continued its expansion by launching its service in Ireland, offering a wide range of 3G video entertainment services. On the flip side some operators have delayed their 3G launches with technological issues such as the weight and battery capacity of 3G handsets, its price and availability being cited as reasons.
On wider issues, as the industry moves closer towards pervasive mobility one of the fastest growing market segments is wireless networking and emerging communications. There is the continued emergence of WLAN, while more long-term effort is being put into the development of new technologies such as ultra wideband (UWB) systems and WiMAX.
In particular, WiMAX has the potential to capture a significant share of the wireless broadband market. To achieve this the WiMAX Forum is focusing on point-to-multipoint technologies using a 2 to 11 GHz spectrum. Also, the ETSI Hyperlan and IEEE 802.16 committees have developed wireless standards that apply to broadband applications and are extending them to provide a degree of mobility. Add to that technical advances such as OFDM that have extended the range of wireless technologies and improved their ability to bypass and penetrate into structures with non-line-of-sight propagation and there is the potential for WiMAX to be an attractive proposition.
Consequently, subscribers may use 3G to supplement rather than replace a wireline broadband service. In the long term, the likelihood is that there will be a convergence of high mobility and low mobility technologies, wireless networking and 3G, which will combine and converge.
Semiconductors
The market for semiconductors in Europe is a significant one. According to World Semiconductor Trade Statistics (WSTS) European semiconductor sales for the first quarter of 2005 were valued at $10.2 B, which is 8.4 percent above the first quarter of 2004. However, due to the shift in mass semiconductor manufacture to the Far East it is not European manufacturers who are significantly capitalising on this market.
That said Europe still has a semiconductor industry, which needs to be nurtured to maintain some economic and political independence. One area where Europe is playing a major role is the development of III-Nitrides for power applications. In particular, in the military sector, radar systems will demand rugged high power capabilities. SiC and GaN semiconductor technologies, which are currently emerging in non-defence markets, are crucial for such systems in the future. In addition there is a growing need for sensors and communications systems as a commodity in which high volume, low cost SiGe semiconductor technologies will be utilised. Also, for microwave and millimetre-wave applications there is strong competition between GaAs, InP-based solutions and silicon-based solutions through SiGe, or SOI CMOS.
As far as the future is concerned it will not be sufficient to simply reengineer existing systems. To propel the semiconductor industry forward what is needed is the development and exploitation of new innovations such as nanotechnology. When developing such technologies reliability, cost and performance will be key considerations. So too will environmental issues as the European Union puts greater emphasis on green issues.
Defence
Security and defence issues are firmly in the public and political spotlight at present.
In Europe there is a diverse mix of established military powers combined with emerging nations that have evolved since the end of the Cold War and the break up of the Eastern Block. Global issues such as the Iraq War and the War Against Terrorism weigh heavily on coalition forces and their allies, while home and border security are a concern for all. To address these issues and to remain effective and competitive microwave technology has to adapt to changing circumstances and practices, while also having a significant role to play in bringing about these changes.
For example, lighter systems capable of more rapid deployment are required to address the new threats and microwave technology has facilitated the migration from large, heavy, waveguide systems and discreet components to integrated subsystems in MIC and MMIC technology.
Increasingly too, microwave technologies that have been developed for commercial applications, particularly in the telecoms industry, are being adopted in the military sector. Examples include network-centric warfare, where secure data links are required to speed up the flow of information in C4I environments. Communication will be an integral part of sensors in order to make the sensor data available in real time for command structures and we will see a new generation of new (networked) sensing systems. On the radar front, phased-array antennas are likely to make the breakthrough to affordable radars and communication equipment.
Not only are military manufacturers embracing commercially developed technology but also they are going a stage further and procuring commercial-off-the-shelf (COTS) equipment and components. By doing so they can take advantage of shorter development cycles for in-time introduction and lower costs, especially if modular systems can be incorporated. However, to utilise COTS effectively requires efficient project management, the early involvement of all parties and ongoing adaptability.
Strategically, in Europe, there is the need to secure the extended EU border. There is a desire for countries to either develop or procure systems that have improved interoperability with EU Countries/NATO equipment, which will offer opportunities to the microwave component supplier. There are also microwave capabilities in these countries that may be attractive to Western Europe with the potential for partnerships.
As for future defence trends, the development of higher power microwave devices for non-lethal weapons is interesting. Also, homeland security is a growth market and the need to increase border security will result in increased opportunities for sensors and microwave subsystems.
Overviews and Surveys
The European Perspective sets the background and the context in which the European microwave industry is currently operating. It is also a gauge as to the sector’s progress and the direction it has taken since the Microwave Journal European Report of September 2004. However, the microwave ‘industry’ is only the sum of its constituent parts, with universities, research institutes and manufacturers all contributing to its performance. Individually and collectively they influence the speed and course of technological development and its implementation, determining the industry’s progression and future prosperity.
In order to get an overall picture this report has sought the views of the academic and industrial and taken European Microwave Week as its platform. The EuMW chairman offers a sector wide overview, while the chairmen of the four individual conferences concentrate specifically on their market sectors. They consider how technology is developing and the long-term impact it is likely to have, while giving a perspective of how the sector fits into the overall microwave picture.
Complementary to that is the commercial and industrial view given by the company executives canvassed for the ‘company survey’. Representing a cross section of the European microwave industry players in terms of size of operation and product focus they offer an insight into current market conditions and technological development. The format is generally a brief overview of the company’s microwave activity, followed by comments on technological and market initiatives. Although the overview and surveys concentrate on one of the four conference categories they also look industry wide and recognise the interaction across disciplines.
Recognising too that technology does not respect geographical boundaries, this year Microwave Journal also offers an ‘outside looking in’ perspective. International players spanning the geographical and technological development spectrum offer opinions on the practicalities, barriers and benefits of competing in the European microwave market.
Industry-wide perspective
Microwave industry overview by EuMW General Chairman, Raymond Quéré
European Microwave Week (EuMW) 2005 is characterized by a significant increase in the number of submitted papers with more than 700 being spread over the various subject areas covered by the four conferences.
Microwave and RF techniques, both passive and active, are well covered by the European Microwave Conference (EuMC), while active devices circuits and applications based on compound semiconductors constitute the main topics of the Gallium Arsenide and other Compound Semiconductors Application Symposium (GAAS®). The European Conference on Wireless Technologies (ECWT) addresses circuits and signal processing techniques, and the European Radar Conference (EuRAD) relates to topics that are oriented towards radar techniques and systems. All four conferences are a true reflection of the current industrial and academic research activity in Europe.
In this article the individual conference chairmen give an in-depth analysis of the current trends in their specific field, but there are some general trends that I would like to point out. Of particular note is the increased research activity into ultra-wideband (UWB) circuits and systems both for wireless communications and radar systems. There is also a great deal of interest being shown in passive circuits, from the point of view of new technologies — LTCC, MEMS and BAW — new materials and new design techniques that can be utilised to produce size and cost reductions.
In the field of power amplifiers the keywords are still ‘high efficiency’ and ‘high linearity’ with significant activity in the development of new architectures for amplifiers to achieve these goals. Research into the development and use of power devices is being driven by major European research projects emanating from the European Networks of Excellence and a joint European Ministry of Defence project on GaN technology.
Millimetre-wave and submillimetre-wave technologies are the subject of research activity while satellite communications technologies and systems are getting significant attention following the launch of Galileo, the European global positioning system. Echoing progress in these fields, at EuMW, two keynotes will be given on the recent developments in THz active devices and applications and new trends for future satellite communications.
RF & Microwaves
Sector overview by EuMC Chairman, Jean-Louis Cazaux
The European Microwave Conference has become the popular annual meeting place for the microwave world, where scientists, engineers and vendors discuss the current hot topics and set the tone for technological development for the coming year.
This year’s conference has seen a significant rise in the number of paper submissions in comparison to previous years. This continues the trend witnessed last year. It is an encouraging sign, confirming that the economy is growing again in this sector after the slow down following the implosion of the so-called Internet bubble. Maybe the charm of Paris is contributing to this revival; however, I believe that the reasons go far deeper than that. A particularly striking fact is that contributions testify to wide globalisation. In total, contributions have been submitted from 49 different countries. The Asian and North American presence is now comparable to that of European countries, making the event truly international.
As far as the prevalent trends are concerned the submitted papers are always a very reliable way of identifying the hot topics of today. A major indication is that telecommunications is still driving a great deal of development. Significant efforts are being directed into fields such as output amplifiers where more bandwidth, more power, more efficiency and more linearity are goals that are always being pursued. Similarly, frequency converters, oscillators and synthesisers are improving for better performance. This indicates that a lot of research and development is applications driven. Another sign is the importance being given to topics related to packaging, interconnection and the related technologies. Significant too, is that several sessions, regular and dedicated, will emphasise contributions of important industrial teams from all over the world.
There is also a good deal of academic activity in what could be considered to be the more basic or classic microwave areas. For instance, marked progress is being made in the development and deployment of CAD and measurement techniques and fundamental work such as EM theory is the subject of in-depth studies. The delegates may also be surprised to find that an oral session has been set up relating to transmission lines this year.
Now, however, I shall come to what is my most striking observation of this year’s EuMC. It is related to the overwhelming presence of work on passive microwave structures. First, filters (not always passive) appear to be the most scrutinised subject in the European microwave field in 2005. All kinds of filters will be discussed: planar, microstrip, millimetre-wave, multiplexer, new topologies, etc. I think this is probably more than just fashion and reflects a true current need. The same could be said about antennas (not always passive either). It is good to see that the antenna community feels comfortable in presenting its latest advances at the conference. Another angle being taken is to view microwaves somewhat in between the device and the system. Furthermore, a large number of different types of antennas are undergoing basic studies and developments.
Basic technologies are actively being pursued. MEMS seems to be entering a new age, even though research is in the relatively early stages. This is probably just as well as many promises have been made in this field by enthusiastic promoters. This is a disruptive technology that now requires measured activity to reach maturity. A very different situation applies to silicon-based microwave electronics. This sector is progressing with impressive results and achievements year after year.
However, research is such that new, exciting hot topics are emerging regularly while others gain in popularity. Today, there is particular excitement surrounding metamaterials and other new materials — supraconductors, EBG, CNT, LCP and many others.
Company surveys
Pascall Electronics
With a quarter of a century of experience of designing and manufacturing for the main primes in Europe and the US, the RF division has established the company as a quality supplier of reliable product with a high degree of functionality. RF & microwave amplifiers, components, subsystems and systems to 18 GHz are manufactured for applications that include communications, air traffic control, ELINT, SIGINT and weather radar.
Its main activities in the RF and microwave field can be split into three. The first being receiver components — log amplifiers, discriminators, phase detectors, constant phase limiting amplifiers and PLDROs. The second is radar receiver sub-assemblies encompassing the receiver front end, multichannel mono-pulse receivers and oscillators.
The company is still very active in the production of EW receiver components, trading on a reputation for performance, design flexibility, reliability and price that has seen major players coming back time after time. The same qualities can be attributed to the company’s radar receiver components and sub-assemblies. Resulting in components that military radar manufacturers find can be designed to suit the application, rather than having to change the performance of the unit to suit the available components.
Pascall is also well established in the in-flight entertainment (IFE) arena. Its Power Supply division has been at the forefront of this market, so it was a natural progression to involve the RF department when a multiplexer was required for the distribution of satellite TV. This market is now growing to include Internet and mobile phone use.
Significant areas of current development include PLDROs. Chris Hood, Pascall sales manager, explains, “Developing our own PLDRO was initially borne out of the fact that there was no European supplier for these devices with the performance our subsystems engineers demanded. Since the inception of the first range, we have extended this to include the dual loop and internal reference units, due for release later this year.”
Similar reasons are behind the launch of DLVAs and EDLVAs, namely the growing need for broadband receiver devices produced within Europe, which can extend the dynamic range of the receiver. Although there are other units on the market, European customers want to be able to buy specific units, rather than ‘off the shelf’ designs.
Hood also has specific views on what technologies are stimulating the market. He says, “Historically, the defence market has led the way in breaking technology. More recently this trend has become more defined by the burgeoning telecom market. It has demanded ever smaller, cheaper and quicker devices, and these products are now leading the markets with technology being consumer led in many ways. However, the defence industry is still at the forefront in systems technology development.”
Finally, on the trends that will influence the microwave industry in the near future, he comments, “I still expect the consumer market to be leading technology over the next few years. This will be determined by companies’ engineers being able to breakthrough the cost versus performance barriers that are inherent at present. I also expect that the requirement for more efficient and secure spectrum usage will demand increasingly clever developments for DSP and Modulation techniques.”
Spinner
Since 1946 the company has been developing and manufacturing state-of-the-art RF components for the world market. Headquartered in Munich, it has production facilities in Germany, Hungary, China and the US. The offering is particularly diverse ranging from filters, diplexers, multiplexers, etc. to connectors and cable assemblies — termed jumper cables. These are the cables that come from the trunk cable at the base to the antenna, and are usually 1 to 3 m long and are very flexible.
For more than 40 years the company has also been supplying quality radio and TV broadcasting products. The range includes all passive components required between the transmitter and the antenna. Its filters, combiners, patch panels, dummy loads and switches have become the standard for many transmitter manufacturers and operators in Europe, North America and the Far East. Today, it is active in developing methods to facilitate the worldwide change over from analogue broadcasting to digital audio broadcasting (DAB) and digital video broadcasting (DVB).
Another active development is in the field of wireless networks where Spinner identified early on that there might be an environmental problem caused by the proliferation of antennas due to the fast growing mobile communication market. The solution chosen was to combine different networks on one antenna, resulting in the Mobile Network Combining System (MNCS®), a future-oriented solution for the multiple use of antenna systems for outdoor wireless applications and in-house services.
The system components support a combination of antenna signals of several operators on a common antenna with low insertion loss as well as splitting the combined signals onto the various branches of an antenna system. Employing this new technology can reduce costs significantly by avoiding the erection of new masts, especially in inner city areas.
In general the company believes that if such new technologies can produce cost reduction and high volumes they will stimulate the market. More specifically it is working to develop new technologies in the medical, security and environmental fields by utilising micro-mechanics, sensing and optical technology. Other areas of activity include the search for new energy sources to replace oil and nuclear power through its involvement in research projects led by international institutes in Europe and the US like CERN (Geneva) or JET (Culham).
The company sees research and development through close cooperation and alliances with universities, research institutes and customers as the means to address rapidly changing needs and develop new innovative solutions to fulfill future market requirements.
Looking forward, Spinner considers the trends that will influence the microwave industry in the near future to be focused on telecom, military and space applications. Wireless communication is considered to be an influence, together with sensors, for example, in radar systems. The company also sees a move towards higher frequencies with some passive coaxial and waveguide products being replaced by fibre optic components.
Wireless Technologies
Sector overview by ECWT Chairman, Professor Serge Toutain and ECWT Co-Chairman, Jean-François Diouris
At the European Conference on Wireless Technology more than 160 papers will be presented during oral and poster sessions. They reflect the current technological developments and their applications.
Emanating from the marriage of microwave techniques and digital communications, wireless applications have proliferated and impacted on the modern world. The desire for users to have real-time contact over long periods and send and receive an increasingly large amount of information, messages or pictures worldwide from a single terminal has required significant technical evolution in system architecture and imposed strong constraints on performance. This has led researchers and development engineers to investigate software radio architectures as a means to achieving greater terminal capacity.
At present, the technological limitations of the DAC and ADC hinder the development of true software radio architectures; the majority of efforts are being directed towards simplified software radio architectures imposing a frequency transposition before any digitalization of the signal. This evolution of architectures together with the use of high spectral effective modulations in order to meet the need for high bit rate transmission requires a great linearity of the transmission chains and thus puts strong constraints on the design of the power amplifiers and mixers.
Therefore, research is particularly active into the techniques of linearization of the transmitter characteristics and the development of broadband mixers with high linearity and low power consumption. In this search for enhanced performance, the concept of system in package (SiP) is particularly useful because it is more able than the ‘single chip’ to easily reach the desired performance levels and in a very compact form. Moreover, the mobile terminal antennas must facilitate a high quality connection to all standards specifications while being drastically reduced in size.
This same problem arises for base stations and mobile terminals for which multi-antenna arrays are increasingly being considered incorporating MIMO transmission concepts. Thus, small size elementary antennas must be designed to provide compact antenna systems that provide space and polarization diversity.
Also, the radio-electric pollution, resulting from the cohabitation of standards, has led researchers and engineers to consider the use of ultra broadband techniques for next generation mobile phones. This may simplify the architecture of the terminals but it imposes strong constraints on the antenna, especially its bandwidth and the stability of its radiation pattern and impulse response.
Another key issue is that due to the availability of cheap standard wireless devices a lot of studies concern ad-hoc and smart sensor networks. It is expected that such networks will once again modify practices and our everyday modern life. Of course, the techniques enabling these new applications will be discussed during ECWT 2005.
Company surveys
7 layers
Founded in 1999, this young and developing telecommunications services company has expertise in the testing and qualification sector for wireless communication technologies and products. It supports clients with the further development of wireless technologies, integrating efficient test procedures into their R&D processes, and offering test services combined with global market access procedures.
The company is active in establishing highly efficient test procedures in its own and its clients’ test laboratories. Through its test and service centres in the US, UK, Germany, South Korea and China, it offers test services for all cellular technologies, covering 3G, 2G, GPRS, EDGE, MMS, AMR, etc., together with Bluetooth, WLAN and EMC.
Current investment focus is on the development of the InterLab® managing, information and process control system. This system can be utilised for the development and testing of highly complex wireless communications products that combine various technologies and have to meet continuously changing market requirements, certification and regulatory requirements. It is considered to be an ideal platform for the product life cycle management of high tech products with hard to meet demands regarding product specifications, development procedures and time-to-market requirements. Its main applications are in the telecommunications sector but other sectors such as the automotive industry may be feasible in the future.
7 layers recognises that due to the growing complexity of products, requirements change throughout the R&D process. In addition, technological progress makes it important to secure interoperability between products from various manufacturers and compatibility with other technologies. Product requirements need to be handled flexibly and independently from each other during the complete product life cycle.
The company also takes the view that new wireless technologies will offer even better and cheaper services for end-users. And while this will mean that the number of users of wireless products will be on the rise for several years, the competition between end-user product manufacturers and operators will increase and attractive business opportunities will be harder to find.
Wireless mobile Internet and communication services, based on global standards and technologies, are seen as being major driving forces in the wireless industry over the next few years as the number and capabilities of smart phones, combining various wireless communications services and different technologies, increases rapidly.
Infineon Technologies
A leading innovator in the international semiconductor industry the company designs, develops, manufactures and markets a broad range of semiconductors and complete system solutions. With respect to the wireless world, its product portfolio comprises chips and chip solutions for RF connectivity, cordless and mobile phones as well as wireless infrastructure.
RF connectivity covers complete RF engines including RF transceivers and BAW filters for 2, 2.5 and 3G mobile phones and wireless data modules, wireless infrastructure for which the company offers power amplifiers and RF ASICs for 2, 2.5 and 3G base stations. As for short-range connectivity it offers Bluetooth EDR, A-GPS and WLAN solutions as well as DECT/WDCT chipsets. The mobile phone solutions products include reference designs for GSM/GPRS, EDGE and UMTS standards, an RF/baseband single-chip and multimedia baseband system-on-chips, as well as protocol stack and application framework software.
Infineon’s focus with respect to RF is currently on short-range connectivity, cellular handsets and wireless infrastructure. One of its main goals is to integrate various RF functions into RF chips used in mobile phones, such as transceivers, filters, switches and power amplifiers, and to establish and use standard CMOS technology production processes.
Infineon expects these developments to further speed time-to-market for mobile phone manufacturers who will be able to offer more design models in the same period of time while reducing their development costs. And, significantly reducing the size of the RF function space in the handset will mean that more space will become available to introduce new or additional features such as MP3, radio, camera and additional connectivity functions. Likewise, other consumer electronic devices, such as gaming consoles, mobile music devices and PDAs will be equipped with mobile communications functionality.
Commenting on how these new technologies can help to stimulate the market, Joseph Strobl, marketing, RF engine, communication business group at Infineon Technologies, says, “Against the background that the electronic bill of materials of a mobile phone currently accounts for at least 50 percent of its production cost, the effects of new semiconductor solutions could be manifold. The potential is to either reduce manufacturing and logistics cost for mobile phone manufacturers or to add mobile communication functionality to other industrial applications and electronic consumer devices working in multiple cellular standards.”
Communications is seen as the major driving factor on the wireless industry, with a growing convergence of voice, video, and data communications applications through the integration of wired and wireless networks. In the area of broadband wireline and wireless communications, the company expects to see the consumer devices connecting to the broadband increasingly becoming wireless and a growing number of end-to-end wireline and wireless broadband solutions exploiting the growth opportunities through VoIP. Looking further into the future Strobl predicts, “Today, we are seeing more and more Triple Play services such as multi-channel HDTV, VoIP and high speed Internet access all being packaged over the IP Network. Mobile phones will offer wireless Internet access and high speed data transfers of up to 7.2 Mbps complying with category 8 of the HSDPA specification for the communication between base station and mobile device.”
However, that does not mean that either wireless cellular broadcasting or wireline broadband will dominate. Strobl says, “ It is more likely that different services will co-exist, depending on the requirements of the consumer. Therefore, new devices will appear that combine the corporate or individual access to cellular networks, wireline broadband networks and terrestrial digital-TV broadcasting, such as WiMAX/GSM phones or mobile TV devices.
Semiconductors
Sector overview by GAAS® 2005 Chairman, Robert Plana
The spirit of European Microwave Week is to consolidate the relationship between academic research institutions, universities and companies and to state where we are and where we are going. In the field of microwave and millimetre communications, current trends are directed towards increasing the frequency band and the miniaturisation of the equipment in order to optimize the cost and weight of the modules that will go into embedded applications. Reliability, testability and reconfigurability are very important factors that will also contribute to the improvement of performance of the microwave and the millimetre-wave modules.
In order to fulfill these requirements, it is important to have joint research efforts both at the material and technology level, at the architecture level for devices, circuits and systems, and at the CAD level in order to minimise the design process and to make it robust and fast.
These are global issues and the competition worldwide is very tough. The European Commission has recognised these challenges and during the 6th Framework Programme new research tools have been launched to reinforce the competitiveness of Europe in this field. For instance, at the academic level, Networks of Excellence have been established to overcome the dissemination and the fragmentation of the academic research effort in Europe.
Of particular interest to the microwave industry are: TARGET for the power amplifier at microwave and millimetre-wave frequencies; SINANO for the new generation of MOS devices including the nanotechnology concept; ACE for advanced antenna modules; METAMORPHOSE for metamaterials and their applications; AMICOM investigating the advanced microsystem concept, merging MEMS and integrated circuit technologies for RF and millimetre-wave communications. Additionally, integrated projects have been created that unite both academic research institutions and companies to improve the innovation and competitiveness of the European industry.
As to the question of where the semiconductor market is, it is quite difficult to answer as it is subject to strong fluctuations. However, it is quite clear that there is still room for a semiconductor industry in Europe and that it is active. For instance, III-Nitrides are playing a major role for power applications in different environments, and Europe occupies a very important place with players such as QinetiQ, Thales and UMS. For microwave and millimetre-wave applications there is strong competition between GaAs, InP-based solutions and silicon-based solutions through SiGe, or SOI CMOS.
With regards to the end user, Europe has a significant presence in the aerospace sector. Other important players include the component and system developers and the instrumentation sector who are all working to bring about advanced circuits and modules featuring high power performance, low noise behaviour, flexibility and high reliability.
Specifically in the field of CAD, there is the necessity for multiphysics software, taking the multiscale approach that is not currently being addressed by commercial solutions and the strategic forging of relationships with academic institutions. From the systems point of view, it is vital to improve the system level design methodology in order to minimise the design phase and to better handle the complexity of future microwave and millimetre-wave modules.
Company surveys
Filtronic
As a major division of Filtronic plc, Filtronic Compound Semiconductors Ltd. supports the Group’s Handset Products division and Wireless Infrastructure division, supplying them with semiconductors and modules for incorporation into higher added-value products. Its foundation is a high yield, high volume six inch GaAs fabrication facility at Newton Aycliffe, UK. Here the major process stream is PHEMT, which is used for manufacturing discrete transistors, complex multi-function MMICs, high IM switches and high power amplifiers. Stepper lithography is used on process lines at 0.5 and 0.25 microns. Another key activity is the production of discrete transistors, which span LNAs to medium PAs at frequencies up to 30 GHz.
Optimising the processes and facilities for a diversity of products is seen as being key. For instance, PHEMT switches for cellular handset antenna switching at power levels around 1 W is a volume market that gives the foundry a stable throughput, while merchant semiconductors, sold through distributors, generates revenue. HPAs for radar X-band transmit/receive modules are sold into the military market and are strategic to the European projects that use them. Also, HPAs for base station amplifiers, compatible with digital pre-distortion techniques, give high efficiency PAs for BSTs with low cost simple architecture.
The policy for continued investment in development is currently being focused on several areas. These include 0.25 micron X-band HPAs for next generation radar T/R modules. These HPAs facilitate improved power-added efficiency for airborne radar, making the transition to this technology more attractive. Then there are multi-function MMICs for point-to-point microwave link radios. The MFMMICS are incorporated into Filtronic’s in-house radio products giving value-added and reducing both cost and part count. The division is also currently active in producing ultra-linear Mach Zhender modulators intended for advanced applications such as photonic sampling for ultra-wideband signal digitisation.
Two particular ways the company envisages that new technologies can help to stimulate the market are by increasing performance while keeping costs constant or reducing them and barrier removal (for example, wideband digitisation or reduced power consumption).
Filtronic Compound Semiconductors sees both the communications and defence markets as being important although the former dominates. However, it is important that the defence market learns to extract spin-out value from communications.
In terms of the future the company believes that new and higher frequency allocations will continue the market growth for GaAs while MMICs will be the route to lower costs. Also, 3G spectral purity and efficiency requirements will favour GaAs in 1.7 to 2.1 GHz.
OMMIC
A member of the Philips Group, the company is a relatively young one having been created in January 2000. Formerly known as Philips Microwave Limeil (PML) it is a new company but with a long history of innovation and over 30 years of expertise in GaAs technology. Charged with the mission to focus on III-V activities OMMIC is developing new techniques for epitaxial wafer production, advanced PHEMT and MHEMT technologies as well as innovative circuits for fibre optics and new generation wireless standards.
As a leading supplier of high end III/V MMICs and epitaxial wafers the company’s fabrication and design, development and production service is based on unique processes such as: 0.18 mm E/D PHEMT, 0.15 mm power PHEMT (12 V, 100 GHz), 0.15 mm metamorphic HEMT (10 V, 150 GHz) and InP HBT (180 GHz). It also boasts that its Fab+ service range is the largest of all the III/V industry including merchant epitaxial wafer growth, unique processes, microbumps, RF MEMS, test, qualification and gettered packaging.
Using these technologies and processes the developmental approach taken is to focus on applications for which there is a clear cut competitive edge of III/V MMICs over Si alternatives. Currently this is leading the company to be most active in the fields of telecommunication infrastructure (base stations) and space applications.
To this end key product development areas are ultra low noise amplifiers (LNA) for base stations and fully integrated core chips for smart antennas and phased-array radars. Taking these in turn, the LNA development is viewed as essential for the implementation of higher capacity base stations, even beyond the 3G standards. The fully integrated core chips are considered to be significant for existing and future space and defence radar applications as well as new commercial applications such as mobile TV in cars.
OMMIC fully integrated core chips include digital serial-to-parallel converters using its 60 GHz E/D process line, which is being converted to 6 inch wafers. It is envisaged that this combination will result in optimum performance/cost/integration, enabling drastic miniaturisation at the system level.
In terms of how new technologies can help to stimulate the market, the company’s view, expressed by Marc Rocchi, chief executive officer, is that aggressive roadmaps in terms of low noise figure (70 nm, 250 GHz HEMTs), mixed mode integration (100 nm, 120 GHz E/D HEMTs) and high power efficiency (0.2 mm GaN HEMTs) are vital for future telecommunication, space and security systems. He explains, “In particular, a higher level of integration combined with optimum low noise and linearity will be paramount in stimulating new consumer and professional applications where high data rate and mobility are required.”
Not surprisingly, Rocchi sees performance, integration and cost as being the major driving forces for the microwave semiconductor industry, with OMMIC’s unique 0.2 and 0.1 mm E/D processes being perfectly suited to meet these challenging requirements via its scaled down processes and six inch wafers.
As for the future Rocchi says, “I see two key trends. The first is on-chip mixed mode integration for key commercial applications such as smart antennas based on technologies offering better than silicon performance. The other is SiP solutions to alleviate the packaging issue by combining the best passive and active components of all technologies in the same plastic package.”
Radar
Sector overview by EuRAD Chairman, Joseph Saillard
As radar systems can be land or space-based, shipboard, or airborne there are specific requirements depending on the application. Nowadays, though, wherever they are to be utilised, radars are built by taking a systems approach in order to obtain the best performance as possible for what is a very sophisticated piece of equipment. This way radar can fulfill its basic functions of target detection and identification, target acquisition, target tracking and target classification. The first implementation of radar was for military purposes, which is still its major application, but civilian applications are increasing, particular in the field of remote sensing.
Against this background let me try to give my opinion as to the future direction of radar systems and I shall try to be bold. I see the main fields where radar will develop being: adaptive phased-array antennas with array architectures, receiving and emitting antennas with orthogonal polarization states; solid-state power amplifiers and their control systems; integrated digital receiver technology with filters and their associated analogue-to-digital converters; extraction of data from the radar return signal with high speed digital processors, complex modulations on the radar pulse and frequency diversity. The waveform must be chosen on the basis of the properties of its ambiguity function. Classical radars use narrowband signals. If a high resolution is required, ultra-wideband signals must be used. As for stealthy targets, polarimetric-multistatic or V-UHF radars offer considerable advantages with regards to detection, recognition and discrimination.
For new radars, the proposed architecture must be based on a modular, scalable and open system design. The codesign (that is, simultaneous development of hardware and software for future missions known or currently unknown) must be used to design new multifunction systems. I also believe that a European software workshop should precede the building of future radars. Furthermore, those working on software radio and telecommunications have to interact to share techniques and expertise for mutual benefit. To achieve these goals will require long-term planning and perseverance, for which European coordination and cooperation will be necessary at academic, industrial and political levels.
Company surveys
DaimlerChrysler
Automotive radar applications will be the subject of a focused session of the EuRAD 2005 conference, reflecting the increased significance of this commercial technology in today’s radar market. As a key player in the automotive sector DaimlerChrysler is at the forefront of research and development.
Current activity in this field is focused specifically on the development and introduction of broadband radar systems in the 24 GHz band for the mass market. This venture has not only presented a technological challenge but a political one too.
It was not until January this year that the European authority for frequency regulation and the European Commission gave approval to use these radar sensors for monitoring a vehicle’s immediate surroundings. And then only as a ‘package solution’ — automakers could begin installing 24 GHz sensors, whereby all technical details, for example, transmission power, scattering width and radiation and antenna characteristics must be precisely prescribed and documented.
Being given this green light has enabled DaimlerChrysler to move towards implementation, which is well advanced with 24 GHz technology having reached a stage of maturity that makes it suitable for series production at a reasonable cost.
Commenting on the next stage the company’s Stefan Gleissner says, “Our ultimate goal is to use these sensors to create an invisible protective shield around the vehicle. The basic concept behind this objective is to have radar sensors monitor an approximately 30 m radius around the vehicle. As more sensors are placed in various positions around the vehicle, the invisible cocoon expands into a system with a complete all-around view. Current estimates indicate that eight radar sensors will be required to achieve this goal.”
The first stage in realising these aims is the system that will be available in the new Autumn 2005 launched Mercedes-Benz S-class. Gleissner explains, “We’re starting out with six sensors for improving certain driving functions, assisting with parking, and securing the vehicle from the front.”
As for the future, the European Commission’s approval for 24 GHz sensors is only valid up to 2013, after which automakers will have to switch to radar sensors in the 79 GHz range. Although such technology is still in the predevelopment stage and expensive it is viewed as being achievable and the company’s aim is to do so at the same price as today’s 24 GHz technology.
QinetiQ
Founded from the world’s first top flight national defence laboratory, QinetiQ’s transition to the private sector means it can give its civil customers access to solutions that are often beyond those readily available in commercial markets. It is one of the world’s leading defence technology and security companies and works on the basis that today the challenges faced by governments to detect, identify and respond to both defence and homeland security threats requires the most advanced technical capabilities science can offer.
Within this remit it utilises a breadth and depth of technical expertise but here it is specifically the microwave radar field that will be covered. Current activity of note concerns research into next generation radar systems and projects to demonstrate potential military utility using microwave radar systems. Add to that the product development of radar subsystems and software for inclusion in OEM equipment, that is, the development of field-programmable gate array (FPGA) cores.
The company uses its world expertise in its core business areas of surveillance, targeting — detection, tracking and identification — and RF seekers. Some areas of activity cannot be explained in detail due to confidentiality but one that can and was singled out as a subject of investment is the development of airborne SAR subsystems, namely the FPGAs, ASICs and software. It is considered that these new developments will impact on microwave markets through greater demand for increased bandwidth components, broadband antennas and waveform generators
QinetiQ considers that new technologies can help stimulate the market either by providing a better solution for the same price or offering the same solution at lower cost. It also views communications as a major driving force with key issues being miniaturisation, together with obsolescence management, which is becoming increasingly important as components are developed in shorter timescales and disappear more rapidly.
As for the future, the company identifies both economic and technological trends that will impact on the microwave radar market. Economically, the growth of the economy in China will result in a good deal of microwave production being transferred from Europe and the US, particularly for mass markets. However, high technology, highly sensitive microwave products will continue to be produced in the West. Technologically, the belief is that higher digital sampling rates will push the DSP further towards the front end and will reduce the need for IF components, with arbitrary waveform generation and ultra-wideband technology becoming increasingly important.
International Perspective
Those are the views of those operating in and from Europe but how do they compare to those outside the continent? Is there potential for growth? What sectors are ripe for exploitation? Are there barriers to trade? And should the approach be competition or cooperation? To answer these questions we took a small snapshot of companies based on different continents. It is not claimed to be a comprehensive survey but is designed to give a flavour of how the European microwave industry and market is perceived worldwide. This report cannot comprehensively cover a large number of companies so has canvassed views from either ends of the development spectrum. The perspective of Western industrialised North America is compared with the diversity of the Far East as the dynamics of Korean technological development is contrasted with the emerging Chinese market, while an Australian company gives a New World view. Is the more direct approach of the US more effective than the more laid back Australian one? Will proactive Korean marketing prevail and can the Chinese rely solely on low prices to crack new markets? Read on…
Company Surveys
North America
Mini-Circuits
The company designs, manufacturers and distributes its products for signal processing in the communications, military electronics, instrumentation, medical electronics, navigation and wireless industries. In response to the explosion of applications and opportunities in telecommunications, cable and wireless applications, the company is currently focusing its resources on these markets.
Of its four basic core technologies — semiconductors, LTCC, core and wire, and microstrip/stripline — Mini-Circuits is currently emphasising the development of semiconductors and ceramics for RF and microwave component applications.
Any new products that are developed will be added to more than 20 product lines currently available worldwide. Considering Europe specifically, Mini-Circuits president, Harvey Kaylie, says, “We are currently operating in all EU member countries with particularly high levels of activity in Germany, France, the United Kingdom and Italy. In the near future we will be targeting the Eastern European countries of Poland, Hungary, the Czech Republic and Russia.”
Commenting on product development, he says, “Our approach to developing products for the European market is first and foremost to listen to customers’ needs. For instance, the EU has instituted Restriction of Hazardous Substances (RoHS) compliance requirements for products shipped to Europe by July 06. Mini-Circuits committed to meet these requirements over three years ago and we have developed processes and products for RoHS that will comply with both forward and backward compatibility for our European customer product requirements.”
In Europe the advances in telecommunications for GSM, 3G, etc. have seen the company make a strong commitment to R&D in order to meet its customer’s challenges and maintain technology leadership. As a result, some of the newest products being introduced are in digital attenuators, switches, frequency mixers, ceramic filters, frequency synthesizers, VCOs and amplifiers.
With regards to developing new technologies to stimulate the market the company mandate is to add to and make a contribution to the market place. That contribution being price, performance, size or robustness, either individually or in combination. Examples include state of the art products that allow performance with greater bandwidths, thereby enabling customers to offer systems that can transmit more data more quickly.
The company is a high tech one operating worldwide with engineers and resources in the US, UK, Israel, India, Malaysia and China. Kaylie explains, “Our members have core competencies in designing and manufacturing products for the full product portfolio, generating software programmes to enhance operations and communications, automation design and manufacturing, quality and reliability testing and analysis, and technical support to our customers.”
He continues, “What makes Mini-Circuits very strong is that our members worldwide exhibit a common attribute for passion to do the right job and satisfy our customers’ needs. I believe that this obsession for passion makes a difference in success between our company and native European manufacturers.”
MITEQ
The company designs and manufactures a complete line of high performance components and subsystems for the microwave electronics community and is active in all of its business sectors — SATCOM, components and integrated assemblies. In particular it is able to leverage its space borne heritage products to take advantage of current interest in moving to higher frequencies and commercial space. Therefore, it is well able to supply product.
Due to its unique internal structure each of the company’s various departments are investing and pursuing the development of specific products based on their area of technical expertise. These products will then be distributed to relevant markets worldwide, including Europe. MITEQ is quite active in Germany, Italy and France. The company would like to expand into other areas but recognises that economies often dictate where the sales activity will be. Likewise, the philosophy is to develop a product based on need rather than concentrating on a specific global area.
When asked what new technologies help to stimulate the market that MITEQ operates in, the company’s Art Faverio says, “If you can offer a product that no one else has, the market tends to create itself. This self-stimulates the market and leads to other areas where we can take the lead.”
He also has strong opinions as to what the company can bring to the global market. He says, “We offer an extremely high quality product, which draws on a heritage technology, translating into an extended warranty of three years on almost all of our products. We are always looking for new technologies that we can use relative to our product base. This plus our ability to take on the technical challenges that others shy away from, makes us successful worldwide.”
With regards to the trends that will influence the European microwave industry over the next few years the company’s take is that the European market will be affected by the economies of the individual countries and in certain areas this may be significant.
China
Shenzhen Kingsignal Cable Technology
Established in 2002 the company designs and manufactures high performance coaxial cable and cable assemblies for a broad range of RF transmission applications. Its products serve mobile communication (GSM, CDMA, PCS, UMTS, PHS, 3G), digital microwave communication, instrumentation and apparatus, and the petroleum, mining, aerospace and military sectors. The main products include semi-rigid cable, semi-flexible cable, the MIL-C-17 RG series, the 75 W and 50 W braiding series, corrugated cable and test cable for use in military, aerospace and RF systems. Customers include Nokia, Andrew, Nexans, RFS, Harris, ZTE, HuaWei and Emerson, and of its $12 M sales last year $5 M was exports.
Currently the company is investing particularly in the development of PTFE insulation coax cable and connectors. Domestically there is rapid development of the telecommunications industry, which demands high performance RF cable and components. Therefore, Kingsignal has dedicated considerable resources to the improvement of coaxial cable technology and the development of new and innovative cable products to address the increasingly rigorous demands placed on RF transmission products.
Indeed, it is now number one in the Chinese market for RF cable. Having achieved that position domestically it is now looking to do the same in other markets. To that end the company employs marketing and technical experts with overseas experience. The company states that a particular target is the European market but cites the comparative low cost of its cable as being a double-edged sword.
While the manufacturer sees it as a selling point and a good lever into the market Kingsignal is finding that low prices are raising question marks about the quality. As the company’s Jimmy Vuong says, “We produce high quality, high performance cable and basically no one believes that a Chinese company can do it well, but we can and do. What we need to do now is let European customers use our products and once they have taken that first step I believe we can develop this market.”
Key target countries will be France, Germany and the United Kingdom. As for the future Vuong comments, “New technology will influence all markets, including Europe, so we are putting a lot of resources into R&D. And when customers realise our quality matches that of our competitors, then cost will give us an advantage in the European market.”
FIRNIC
With over 30 years experience the company specialises in designing and manufacturing RF connectors and cable assemblies, etc., primarily for the connection and transmission of telecom systems and directed towards telecom operators and system equipment manufacturers.
The company prides itself on having the latest equipment, in-depth manufacturing experience and producing good quality products. It is also committed to innovative research and development. Currently one area where it is being deployed is in the development of high frequency RF connectors.
FIRNIC perceives the key to developing products for any market to be to strive for stability, simplicity and quality in order to achieve reliability at a low cost. Like so many Chinese manufacturers low prices are seen as being the key selling point and providing the gateway to new markets.
Europe is perceived as being a key target market for such components and the company believes it can make a big impact by offering high quality, low cost products. The intention is to enter the United Kingdom market first in 2006, and depending on its success to migrate into similar established markets.
As for the future, the company’s stated intention is to continuously upgrade its products and provide better services. On the component front it envisages efforts being directed towards producing higher frequency products that are smaller in size and lower in price.
Republic of Korea
Actipass
Concentrating on supplying RF and microwave components, modules and subsystems for wireless communication applications, the company offers a wide range of products from simple passive components to complex integrated systems. As they cover such a broad field, these products can be divided into seven categories: Repeaters for IMT 2000, PCS, DCS, GSM and Dual (PCS and WCDMA); Repeater Management Systems; Subsystem Assembly including mobile communication relay equipment, RF and microwave front-end and mobile communication base stations; Active Components such as HPAs, MPAs, LNAs, power and VSWR detectors, mixers, up/down converters, digital attenuators, synthesizers and receivers and transmitters; Passive Components including bandpass filters, duplexers, power dividers/combiners, directional couplers, arresters, terminations, attenuators, limiters, etc; Waveguide Components; and PNG Digital Solutions.
Traditional product lines such as waveguide components, RF/microwave passive and active devices and modules remain an important segment of Actipass business and it is still growing. However, the largest growth opportunities have been identified as being in the wireless sector. To capitalise on this market and in recognition of the pivotal role that research and development plays, 2002 was a milestone in the company’s development with the construction of a modern research centre in Yeongtong, Suwon, and the successful launch of its wireless products. Consequently, the company is now considered to be a worldwide player in the core market sectors of mobile communication systems, microwave systems, satellite communication systems and broadcasting equipment. At present, particular investment is being channelled into the development of GSM repeaters and a base station test unit, together with optical repeaters.
As far as the European market is concerned the company is currently active in Sweden, Finland, Italy and Germany, and is looking to target France, the UK and Eastern European countries. The belief is that with significant infrastructure expansion in Eastern Europe and the continued enhancement of the infrastructure in Western Europe, the European market for microwave products will see growth for at least the next five years. Consequently, Actipass is mounting an aggressive marketing campaign to be a key player in this market. The strategy being to maintain the development at the component level by introducing new technologies and innovative solutions and, in parallel, making significant efforts to offer front-end modules with complete functionality in all applications.
To achieve this goal of diversification, the company’s strategy has been to invest significantly in product innovation. Repeaters that play a key role in the enhancement of network capacities now represent a good part of the core business, which is still growing. Also, antennas for handsets have been a focus of research, with the company retaining several patents and continuing development.
The evolution of such technologies is seen as being essential in order to stimulate the market, particularly in Europe. With wireless devices becoming everyday consumer necessities and the convergence of wireless voice, image and data, technology is accepted as playing a vital role in the development of new products to satisfy consumer needs.
The identification of new technology investments and the efficient transition of these technologies into product and business cases are the key elements necessary to stimulate the market. Therefore, new technologies play a key role in improving performance and offering cost-effective solutions and more added value equipment. To this end the Actipass philosophy is to offer high performance and cost-effective solutions for the satisfaction of customers.
With regards to what trends will influence the European microwave industry, the belief is that wireless communications for individual and commercial application will remain the major growth area in the next few years. Politically, the defence/security sector will be significant and in terms of technology the expectation is for more integration and less wires. The development of software defined radio and architectures that can transfer the function definition in the software domain is seen as being significant while the drive for more capacity through 2.5G and potentially 3G and 4G will be the main driving forces for the development of the microwave industry.
Australia
Micreo
The development and manufacture of microwave-electronic and photonic products for commercial and aerospace applications are the company’s main fields of operation. It relies on its experienced team of engineering and production staff with proven track records to use their skills to develop new products. Currently, particular effort is being channelled into microwave products for 40 Gbps optical communications and electronic warfare systems. Also, significant investment is directed towards the development of 40 GHz optical modulators and millimetre-wave receivers.
Whatever the application the focus is to produce a global product as most of Micreo’s output is exported. The company cites close cooperation with its customers, be they Australian or international, as being a key to its success. That is the company’s approach to Europe too and it is currently looking to expand in Italy, France, Germany and the UK.
However, rather than aggressively target markets its philosophy is to gradually spread the word far and wide and let the product and the service it offers do the talking. Tim Shaw, Micreo managing director, explains, “We have a few new technologies and ideas, but anyone who can deliver on time and meet the specifications in this global market will always be well-received. We would rather deliver a few products to customers all over the world than try to dominate our own region with a range of products.”
The company also takes a very practical view when it comes to the technological development process. The manufacturing process technologies are viewed as being as important if not more important than the product technologies, in helping to produce products that are more reliable and cost effective.
By taking this practical and non-aggressive approach Micreo intends to continue its gradual expansion into the international market with Europe featuring high on its hit list.
Conclusions
The European microwave market is vast and diverse and cannot be understood in a single snapshot but this report highlights the major strategies and future trends characterised in both the present and emerging marketplace.
The climate in which the European microwave industry operates is changing. Externally, it is not viable to compete with the low cost mass market production of the Far East and other emerging economies. Internally, the expansion of the European Union has increased competition but also provides potentially lucrative markets and the opportunities for partnering.
To prosper Europe needs to capitalise on its strengths. It has a wealth of academic and technical expertise and is at the forefront of technological development in many sectors. For microwave and RF research the trend is towards an interdisciplinary and collaborative approach enabling system capabilities to guide the selection of new technologies. This is being backed up with financial investment and commercial development in an environment of coordination and cooperation at academic, industrial and political levels.
To this end, the 6th Framework Programme, to be followed by the 7th Framework Programme and the Competitiveness and Innovation Framework Programme are providing a coordinated structure to European research, funding and commercial collaboration. And through the associated Networks of Excellence the European microwave industry is beginning to reap the benefits.
As for the future, there will be greater migration towards the exploitation of higher frequencies. It will be interesting to see whether any of the emerging wireless technologies dominate. New semiconductor materials and technologies will begin to bare commercial fruit. The defence market is more difficult to predict, reflecting the uncertainty of new threats but microwave technology will continue to play a vital role.
Acknowledgments
The author would like to thank the EuMW and conference chairmen and company executives who shared their in-depth knowledge and expertise. Their contributions have given a rare insight into the microwave industry from those working at the forefront of academia and industry.
