Rising tensions between Israel and Iran have drawn global focus back to the modernization of defense communications and radar systems. This shift is driving sustained demand for military-grade power amplifiers (PAs), positioning Taiwan-based suppliers like Transcom as critical contributors to high-frequency defense applications. Transcom has experienced consistent growth in orders from Israeli clients over the past two years.
The recent conflict underscores the rising importance of electronic warfare and precision long-range strike capabilities. Beyond traditional firepower, both Israel and Iran have heavily deployed drones, missiles, and missile defense systems, accelerating the need for advanced, high-reliability radar and communication modules. As a result, PA components with higher frequency, lower noise, and superior reliability are in growing demand.
Global defense PA market on steady growth path
According to research from A2Z Market Research, the global defense and military PA market is projected to grow from US$2.499 billion in 2024 to US$2.956 billion by 2027, representing a compound annual growth rate (CAGR) of 5.77%.
On the supply side, US-based RF integrated device maker Qorvo offers a comprehensive suite of defense- and aerospace-grade products, including monolithic microwave integrated circuits (MMICs) for military radar systems. Its core focus spans radar, electronic warfare, satellite communications, and avionics systems.
Taiwan's compound semiconductor supply chain includes players such as Win Semiconductors, Advanced Wireless Semiconductor Company (AWSC), Visual Photonics Epitaxy Co. (VPEC), Transcom, and Intelligent Epitaxy Technology (IntelliEPI). However, few specialize exclusively in military-grade PA components. Transcom leads in this niche, with a portfolio that includes microwave amplifiers and subsystems.
Credit: DIGITIMES
Transcom anchors its growth in domestic and Israeli defense markets
Transcom counts Taiwan's Ministry of National Defense as a key end customer. Backed by the government's defense localization strategy, the company has benefited from policies encouraging private-sector participation in defense R&D. With national defense budgets climbing steadily, Transcom is poised for further domestic revenue growth.
Notably, Israel has become the company's second-largest export market. In 2023, the country accounted for 3.98% of Transcom's revenue, which rose to 8.04% in 2024. The company has maintained long-term partnerships with Israeli clients and has seen increased urgency in orders and delivery schedules amid ongoing conflicts in Ukraine and the Middle East.
Showcasing military innovation on the global stage
Transcom is taking part in IMS 2025, the International Microwave Symposium in the US, where it is presenting its high-power solid-state power amplifiers (SSPAs) designed for both military and civilian radar applications.
The company is also exhibiting radio frequency front-end modules and wideband amplifiers tailored for unmanned aerial vehicles (UAVs) and jamming systems. Meanwhile, at the same event, Qorvo unveiled two advanced S-band switched filter bank (SFB) modules. These products aim to meet the increasing demands for agility, compactness, and efficiency in radar systems utilized within the defense and aerospace sectors.
Credit: Qorvo
Defense PA market: High barriers, high margins
Due to the highly customized nature of defense PA systems, strict technical requirements, and limited alternatives, the market remains highly concentrated. Unit prices and profit margins are typically higher than those in the commercial smartphone PA market, and suppliers face less pressure from price competition.
While no supplier wishes for prolonged conflict, geopolitical tensions show no sign of abating. Governments around the world are advancing next-generation defense technology programs, which are expected to fuel continued demand for advanced PA components.
From a commercial standpoint, Taiwan's PA vendors that can maintain strong client relationships and a technological edge may secure a long-term strategic position in the global defense supply chain.
Article edited by Jack Wu
