A Gunn diode is a type of diode that uses the Gunn effect to generate microwave frequencies when a voltage above a threshold is applied. It consists of a single piece of N-type semiconductor like gallium arsenide and has a negative differential resistance region in its current-voltage characteristics that allows it to function as an oscillator. Gunn diodes are used to generate microwave signals from 10 GHz to THz and have applications in radar, sensors, and microwave transmission.