Raytheon, a business unit of RTX Corporation, secured a contract from the Air Force Research Laboratory on February 17 2026 to develop a domestic production capability for thin‑film lithium niobate (TFLN) wafers, a key component for high‑speed optical communication and sensing systems used by the Department of Defense and commercial customers.
Under the agreement, Raytheon’s Advanced Technology team will partner with U.S.‑based G&H to transfer ion‑slicing expertise and establish a manufacturing process for high‑quality TFLN wafers. Production is slated to transition to G&H in early 2026, with the company expected to produce low‑rate initial batches before scaling up to meet domestic demand.
The contract addresses a supply‑chain vulnerability that has left U.S. defense and commercial sectors dependent on foreign TFLN suppliers. By creating a reliable U.S. source, RTX aims to secure a critical material for next‑generation photonics, benefiting sectors such as artificial intelligence, data‑center networking, and telecommunications. Analysts project the TFLN market could grow from $190 million to $1.93 billion by 2029, driven by demand for high‑frequency modulators, quantum‑sensing devices, and LiDAR systems.
RTX’s 2025 sales topped $88 billion and the company employs more than 180,000 people worldwide. The TFLN initiative aligns with RTX’s broader strategy to strengthen its defense and aerospace segments while expanding its commercial photonics footprint. Colin Whelan, president of Raytheon’s Advanced Technology, noted that “Global access to TFLN has become increasingly constrained, with supply consolidation leaving U.S. companies vulnerable to international disruptions.” Dr. Stratos Kehayas, president of G&H’s Photonics division, added that “Establishing G&H as a robust, domestic merchant supplier of thin‑film lithium niobate is essential for creating next‑generation faster and more efficient photonic transmission and sensing systems.”
No immediate market reaction or analyst commentary was identified in the available sources, indicating that the announcement has not yet triggered a measurable shift in investor sentiment.
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