Dallas, Texas 04/29/2014 (FINANCIALSTRENDS) – RF Micro Devices, Inc. (NASDAQ:RFMD) disclosed recently that it had been awarded a $9.7 million contract from the Air Force to fit out “Millimeter Wave GaN Integrated Circuits” which will be then mounted on a 6-Inch Wafer. The procurement would be routed through the Manufacturing and Industrial Technologies Directorate which is a unit of the Air Force Research Laboratory. The firm would be using its proprietary technology to produce a 0.14 micron big “Gallium Nitride (GaN) monolithic microwave integrated circuit”.
Gorden Cook, who is the general manager of RF Micro Devices, Inc. (NASDAQ:RFMD) Power Broadband has been quoted to have explained the importance of the deal as follows. “Through this Air Force contract we have the opportunity to establish the industry’s first 6-inch millimeter wave GaN-on-SiC process technology, allowing RFMD to expand our technology capabilities beyond 100GHzWe expect this new technology will not only enable a new class of affordable power MMICs for defense applications such as radar and military communications, but also commercial applications including cable TV networking, microwave backhaul and cellular infrastructure.”
As per independent analyst estimates, the government and military driven demand for micro chip market is expected to triple by $334 million by 2017. The firm is expected to report earnings for its 4Q on 29th April. Ahead of the earnings call, Canaccord Genuity upped the price target on the stock from previously announced $9.25 to $7.25 per share and recommended a Hold rating on the stock. The new PT translates into a premium of 15.7 percent on current price points.