MACOM Technology Solutions (MTSI): A 6G and Next-Gen Radar/SATCOM Catalyst to Watch Now

Edwin FosterWednesday, May 28, 2025 8:52 am ET
30min read

The International Microwave Symposium (IMS) 2025 has crystallized a critical inflection point for MACOM Technology Solutions (MTSI). As the world's leading supplier of RF/microwave and semiconductor solutions, MACOM's showcase at IMS 2025—held in San Francisco from June 15–20—revealed underappreciated growth drivers in its core segments: advanced RF components for 6G and radar systems, and its industry-leading GaN/GaAs foundry services. These segments are poised to benefit from secular tailwinds in next-generation wireless infrastructure, defense electronics, and satellite communications.

The Catalyst: IMS 2025 as a Showcase of MACOM's Technical Supremacy

At IMS 2025, MACOM demonstrated a portfolio of innovations that underscore its dominance in high-frequency, high-power semiconductor solutions. Key highlights include:

  1. Next-Gen RF Components for 6G and Radar:
  2. Ka-Band/Ku-Band PAs and LNAs: MACOM's low-noise amplifiers (LNAs) and power amplifiers (PAs) for Ka- and Ku-Band frequencies are critical for 6G's ultra-high-speed, low-latency requirements. Their Ka-Band GaN HEMT LNAs, showcased in a first-of-its-kind demonstration, operate at frequencies up to 100 GHz, enabling seamless integration into future 6G networks.

  3. X-Band Radar Solutions: MACOM's 300W X-Band GaN-on-SiC matched PA pallets and front-end modules for radar systems were displayed, addressing growing demand for high-resolution radar in defense and autonomous vehicles.

  4. GaN/GaAs Foundry Services:
    MACOM's foundry segment—highlighted at Booth #1143—offers a full lifecycle of support from design to high-volume manufacturing. Its GaN-on-SiC and GaAs process technologies deliver unmatched reliability, with a 70-year track record and three global fabrication facilities. These services are underappreciated by investors, yet they are pivotal in enabling customers to rapidly transition from prototyping to mass production of advanced RF components.

  5. Technical Sessions: Proving Cutting-Edge R&D:
    MACOM's presentations at IMS 2025—such as “High-Efficiency PAs for 6G FR3 Handsets and MIMO Radar” and “Ka-Band LNAs with Enhancement-mode GaN HEMTs”—demonstrated its leadership in waveform engineering, harmonic control, and packaging innovations. These advancements directly address the performance bottlenecks in current 5G infrastructure, positioning MACOM to capitalize on the 6G rollout.

Market Opportunity: A $30B+ Addressable Market is Opening

The global market for RF/microwave components in 6G, SATCOM, and radar is projected to grow at a 12% CAGR, reaching $34.6 billion by 2030 (per MarketsandMarkets). MACOM's unique positioning in three key areas ensures it will capture outsized share:
1. 6G Infrastructure: MACOM's GaN-based PAs for mmWave frequencies (24–100 GHz) are foundational for 6G's terahertz-speed ambitions.
2. Defense Radar Modernization: The U.S. DoD's $1.7 trillion modernization plan prioritizes high-power radar systems, a core MACOM strength.
3. SATCOM and FSO Growth: MACOM's Opto-Amp™ product line and space-qualified FSO solutions are critical for low-Earth-orbit (LEO) satellite constellations, which will see $150B in investment by 2030 (McKinsey).

Why MACOM is Undervalued—and Why Now is the Time to Buy

MACOM's stock trades at just 12.5x forward EV/EBITDA, far below its peers in the semiconductor and defense electronics sectors. This undervaluation stems from two misconceptions:
1. Foundry Services' Underappreciated Value: MACOM's foundry segment generates ~40% of revenue but is often overlooked in favor of its product sales. Its foundry expertise, however, is a moat—ensuring customer stickiness and high margins.
2. Market Timing Misalignment: Investors have yet to price in the 6G and SATCOM inflection points. MACOM's 2025 roadmap—highlighted at IMS—is now actionable, with key contracts likely to materialize in 2026–2027.

Investment Thesis: A 50% Upside by 2026

MACOM's technical prowess, coupled with its diversified end markets, positions it to deliver 20–25% annual revenue growth through 2027. Key catalysts include:
- 6G Trials: Early 6G testbeds in China, the U.S., and Europe will require MACOM's mmWave components.
- Defense Contracts: MACOM's X-Band radar solutions are likely to win contracts under the DoD's Electronic Warfare Modernization Program.
- SATCOM Expansion: Partnerships with SpaceX's Starlink and OneWeb will drive demand for MACOM's SATCOM PAs and FSO systems.

Final Call: Buy MACOM Before the Market Catches On

MACOM's IMS 2025 showcase has laid bare its underestimated growth potential. With a compelling valuation, a fortress balance sheet ($380M in cash), and secular tailwinds, MTSI is a rare “buy now” opportunity in a crowded semiconductor space. Investors who act swiftly can secure exposure to a $30B+ market at a fraction of its true value.

Risks: Dependence on defense spending, supply chain disruptions, and competition from analog RF players.

Action: Buy MTSI stock at current levels. Set a price target of $120–$140 by end-2026.

This analysis underscores MACOM's role as a catalyst-driven play in next-gen infrastructure. The time to act is now—before the market recognizes what IMS 2025 already revealed.