Raytheon launches U.S.-based TFLN wafer manufacturing program

Raytheon has been awarded a contract by the U.S. Air Force Research Laboratory to establish a domestic production capability for thin film lithium niobate (TFLN) wafers, a material used in high-speed communications and advanced sensing systems critical to defense technology, the company announced.

The effort aims to create a secure U.S.-based supply chain for TFLN, a specialized photonic material currently dominated by foreign suppliers. According to the company, the initiative is intended to ensure reliable access for both the defense industrial base and commercial industries that rely on next-generation optical and computing technologies.

Raytheon said its Advanced Technology business unit will work with U.S.-based firm G&H to develop manufacturing processes capable of producing high-quality TFLN wafers domestically. Once development is completed, production will transition to G&H in early 2026 under a low-rate initial production phase.

As noted by the company, TFLN plays a central role in modern photonics, enabling faster data transmission, secure communications links, and advanced sensing capabilities used across military and civilian systems.

“Global access to TFLN has become increasingly constrained, with supply consolidation leaving U.S. companies vulnerable to international disruptions,” said Colin Whelan, president of Advanced Technology at Raytheon. “Through this effort, Raytheon will stand up an independent U.S. supplier of next-generation TFLN, building an open, third-party source that can serve a broad range of defense and commercial customers.”

The Air Force Research Laboratory contract focuses on establishing a scalable manufacturing pathway rather than producing finished defense systems. Raytheon will apply its ion-slicing expertise — a process used to separate thin crystalline layers — to help create wafers suitable for photonic integrated circuits.

Thin film lithium niobate is widely used in optical modulators and photonic devices that transmit data using light instead of electrical signals. These components are increasingly important for secure military communications, sensor networks, and emerging computing architectures linked to artificial intelligence and data processing.

Under the agreement, Raytheon and G&H will jointly develop and validate production methods before transferring sustained manufacturing responsibilities to G&H facilities in the United States. The companies said collaboration will continue during the transition to ensure technology transfer and production readiness.

“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,” said Dr. Stratos Kehayas, president of Photonics at G&H. “G&H’s vertically integrated crystal and wafer manufacturing capabilities enable the reliable transition of this technology into U.S.-based production, strengthening supply chain resilience for both defense and commercial applications.”

Photonics technologies underpin a wide range of modern military capabilities, including encrypted communications, radar processing, electronic warfare systems, and precision sensing platforms.

Unlike traditional electronics, photonic systems transmit information using light, allowing higher bandwidth and lower latency. These advantages are increasingly relevant as military networks handle larger volumes of sensor and operational data across distributed forces.

Raytheon said the program will establish an open commercial supply model, meaning the resulting domestic production capacity will support multiple customers rather than remaining limited to a single defense program.