United Microwave Technology (UMT) has received orders from three major low earth orbit (LEO) satellite customers, which is expected to bring in LEO satellite opportunities for its subsidiary Radiation Technology (RTI).
RTI chairman Shumin Chen pointed out the demand for antennas continues to grow. With the acceleration of 5G central offices, demand on the consumer and application ends are also growing. LEO satellite receiving stations require GPS antennas, which also could bring new growth opportunities to RTI.
RTI president Tungyi Wu said on-hand orders are full until August. New orders will be added in the second half of 2022 during peak season. Overall annual revenue is expected to grow by 20%. Wi-Fi and 5G are still the main drivers in 2022. In the future, Wi-Fi 7 and satellite positioning antennas are expected to be main contributors, including LEO satellites that use GPS.
RTI parent company UMT holds more than 50% of its shares. RTI currently has orders from major LEO satellite companies in the US and UK. Its portfolio includes satellite, ground receiving, and user end products, and is already shipping products.
Wu also looks forward to opportunities to bring RTI into the ground receiving GPS antenna sector through UMT in the future.
Wu pointed out that RTI specializes in microwave and millimeter wave (mmWave) high frequency antennas, particularly radio frequency (RF), which has an extensive application range. Wu noted that antennas are not just devices for sending and receiving electromagnetic wave signals, they also affect the transmission speeds and throughput of communication systems, making them an essential component of wireless communications equipment.
According to Wu, RTI has already been in the industry for 25 years. The development of network bandwidth toward higher frequencies, RTI and UMT's technical superiority in high frequency and microwave antennas, and the movement of some customers' production bases to Asia in the past year have all been good for the company.
Antenna products have a wide range of applications and their designs are getting increasingly more complex, said Wu. For example, antennas used in smart transportation that are placed inside traffic signals or vehicles require multiple signal sources. Antennas must be able to cover and be compatible with signal sources from 4G, 5G, Wi-Fi to GPS, which tests the technical capabilities of the antenna manufacturer.
In the future, Wu believes products related to smart applications and Wi-Fi will be the main growth drivers. This includes 5G sub-6 antennas. As countries accelerate the construction of 5G base infrastructure post-COVID-19, it will drive more 5G sub-6 antennas applications. Currently, its market share has reached 30% and will continue to grow.
As Wi-Fi 6 has already become mainstream, RTI is already developing Wi-Fi 7 testing products with customers. Due to Wi-Fi 7 specifications, these products are not expected to be finished until 2023, and mass production is not expected until after 2023. The industry pointed out that antenna multiple-input multiple-output (MIMO) technology for Wi-Fi 7 has been raised to 16x16 from the previous generation 8x8 with more antennas and higher-end technology.
RTI's unaudited 2021 revenue amounted to NT$814 million (US$28.55 million), for year-on-year growth of 6%. Net profit reached NT$93.1 million for on-year growth of 48%. Gross margin for the year came to 27%, for an on-year decrease of 1%, while operating margin reached 14% for on-year growth of 3%.
