RTX works with AMD to develop next-gen Multi-Chip Package

Rhea-AI Summary

Raytheon, an RTX business, has been awarded a $20 million contract to develop a next-generation multi-chip package for use in military systems, integrating state-of-the-art commercial devices from industry partners like AMD. The collaboration aims to deliver new system capabilities with higher performance, lower power consumption, and reduced weight, providing cutting-edge technology to Department of Defense applications on a faster timescale.

Insights

Defense Technology Analyst

The contract awarded to Raytheon for the development of a multi-chip package signifies a strategic enhancement in the defense technology sector. The integration of commercial high-performance microelectronics into military systems is a critical step in maintaining technological superiority on the battlefield. The use of advanced chiplets and interconnect technologies is expected to yield systems with greater bandwidth and data processing capabilities, which are essential for modern warfare where information dominance can be a decisive factor.

The fusion of state-of-the-art commercial technology with military applications is not only a testament to the adaptability and innovation within the defense industry but also highlights the growing trend of public-private partnerships. This approach leverages commercial advancements at a pace previously unseen in the traditionally slower-to-innovate defense sector, potentially leading to cost efficiencies and quicker deployment of advanced capabilities to warfighters.

Furthermore, the emphasis on domestic manufacturing of these components aligns with national security interests by reducing reliance on foreign supply chains, which have been a concern in recent years. The implications for stakeholders include bolstering the resilience of the defense technology supply chain and potentially improving the competitive edge of U.S. military technology on a global scale.

Financial Analyst

The $20 million contract awarded to Raytheon by the S2MARTS consortium is of substantial interest to investors and stakeholders within the aerospace and defense industry. This contract represents not only an immediate influx of revenue for Raytheon but also positions the company as a continued leader in the development of advanced sensor technologies. The collaboration with AMD and other industry partners for the integration of commercial devices into defense systems could lead to further opportunities and contracts, potentially enhancing Raytheon's revenue streams and market position.

Investors should note the potential for cost savings and efficiency improvements associated with the integration of commercial microelectronics into defense systems. The long-term financial implications could include reduced research and development costs, as well as lower production costs due to economies of scale when leveraging commercial technology.

It is also important to consider the potential for increased demand for Raytheon's advanced sensor systems as a result of enhanced capabilities. This could lead to a positive impact on the company's stock value, reflecting investor confidence in Raytheon's ability to innovate and secure additional contracts in the future.

Supply Chain Analyst

The announcement of Raytheon's contract for microelectronics packaging has significant implications for the supply chain within the defense and technology sectors. The integration of chiplets from commercial partners like AMD into a Raytheon-designed package underscores the importance of cross-sector collaboration in supply chain management. This approach can lead to a more diversified and robust supply chain, mitigating risks associated with single-source dependencies.

Raytheon's use of its 3D Universal Packaging domestic silicon manufacturing process indicates a strategic move towards onshoring critical components of the defense supply chain. This shift is likely to resonate with stakeholders concerned about supply chain security and the geopolitical implications of offshore manufacturing. By localizing production, Raytheon not only secures its supply chain but also contributes to domestic job creation and technological sovereignty.

The management of the award by the National Security Technology Accelerator and the Naval Surface Warfare Center Crane Division suggests a streamlined and focused effort to expedite the development and integration of these advanced technologies into defense systems. This could serve as a model for future defense contracts, emphasizing the importance of efficient supply chain coordination and project management for timely delivery of critical technologies.

Collaboration will accelerate the delivery of microelectronics packaging for military systems

ARLINGTON, Va., Feb. 1, 2024 /PRNewswire/ -- Raytheon, an RTX (NYSE: RTX) business, has been awarded a $20 million contract through the Strategic and Spectrum Missions Advanced Resilient Trusted Systems (S²MARTS) consortium to develop a next-generation multi-chip package for use in ground, maritime and airborne sensors.

Under the contract, Raytheon will package state-of-the-art commercial devices from industry partners like AMD to create a compact microelectronics package that will convert radio frequency energy to digital information with more bandwidth and higher data rates. The integration will result in new system capabilities designed with higher performance, lower power consumption and reduced weight. 

"By teaming with commercial industry, we can incorporate cutting-edge technology into Department of Defense applications on a much faster timescale," said Colin Whelan, president of Advanced Technology at Raytheon. "Together, we will deliver the first multi-chip package that features the latest in interconnect ability – which will provide new system capabilities to our warfighters."

This multi-chip package will be created with the latest in industry-standard die-level interconnect ability, enabling individual chiplets to reach their peak performance and achieve new system capabilities in a cost-effective and high-performance way. It's designed for compatibility with Raytheon's scalable sensor processing requirements.

Chiplets from commercial partners will be integrated onto a Raytheon-designed and fabricated interposer by our 3D Universal Packaging (3DUP™) domestic silicon manufacturing process in Lompoc, California. This award will be managed by the National Security Technology Accelerator and administered by the Naval Surface Warfare Center Crane Division in Indiana.

About Raytheon
Raytheon, an RTX business, is a leading provider of offensive and defense solutions to help the U.S. government, our allies and partners defend their national sovereignty and ensure their security. For more than 100 years, Raytheon has developed new technologies and enhanced existing capabilities in integrated air and missile defense, smart weapons, missiles, advanced sensors and radars, offensive and defensive cybersecurity tools, interceptors, space-based systems, hypersonics and missile defense across land, air, sea and space.

About RTX
RTX is the world's largest aerospace and defense company. With more than 185,000 global employees, we push the limits of technology and science to redefine how we connect and protect our world. Through industry-leading businesses – Collins Aerospace, Pratt & Whitney, and Raytheon – we are advancing aviation, engineering integrated defense systems for operational success, and developing next-generation technology solutions and manufacturing to help global customers address their most critical challenges. The company, with 2023 sales of $68.9 billion, is headquartered in Arlington, Virginia.

All rights reserved. AMD, and combinations thereof are trademarks of Advanced Micro Devices, Inc.

For questions or to schedule an interview, please contact corporatepr@rtx.com

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SOURCE RTX

FAQ

What is the contract amount awarded to Raytheon?

Raytheon has been awarded a $20 million contract through the S2MARTS consortium.

What is the purpose of the collaboration with commercial industry partners like AMD?

The collaboration aims to develop a next-generation multi-chip package for use in ground, maritime, and airborne sensors, providing new system capabilities with higher performance, lower power consumption, and reduced weight.

Where will the multi-chip package be created and fabricated?

The multi-chip package will be created with the latest in industry-standard die-level interconnect ability and fabricated using Raytheon's 3D Universal Packaging (3DUP™) domestic silicon manufacturing process in Lompoc, California.

Who will manage the award and administer the contract?

The award will be managed by the National Security Technology Accelerator and administered by the Naval Surface Warfare Center Crane Division in Indiana.