Economania

Electronics is one sector where no industrial society or trading nation can afford to lag behind. Even the United States recognises this whether it is prepared to admit in public or not. The skillset involved with electronics and IT, like it or lump it, often determines if any nation remains competitive in world markets. This sector also feeds into assembly of high technology platforms such as warships or combat aircraft and this is another reason why it retains its significance.

Raytheon is a leading electronics firm that has grabbed a contract worth $2.1 billion to provide continuing engineering and product support for the SM-3 missile by the US Navy. This contract would span a decade or more and reflects the importance of mission readiness to combat any perceived threat. The SM-3 missile is deployed aboard US warships to intercept short and intermediate range ballistic missiles. Therefore it provides a missile shield to any task force or carrier based battle group.

The same company has won a further contract from the US Navy to provide the next generation jammer for combat aircraft deployed aboard carriers such as the EA-18 Growler, itself a variant of the FA-18 Hornet. The final product is known as NGJ-MB or next generation jammer mid-band that consists of two pods containing active electronic scanned arrays that function in the mid band frequency range. This would be operated to target advanced radar threats, data links or even anti-aircraft systems. The firm will also be providing more equipment based on this product to the Royal Australian Air Force.

BAE Systems has also won an order from the US Space Force to provide a missile tracking and warning system. BAE Systems will act as the prime contractor for what will be known as Resilient Missile Warning and Tracking Medium Earth Orbit Epoch 2 programme. Ten spacecraft will be designed and built under this contract worth $1.2 billion and operations support is also included. BAE Systems will also develop the ground based hardware that will manage those satellites by delivering a C2 solution or command and control and mission operations solutions. Each satellite will be equipped with the latest electro/optical infrared sensor and communication payload. The payload will be based on the Trek bus variant of BAE Systems Elevation spacecraft product line. This offers more interface flexibility and secure communications.

Raytheon has also won a contract to provide more spares support, integration and testing services from the US Navy worth $536 million as regards the SPY-6 radar. This radar has been installed on two vessels within the US Navy and more will follow. This radar is designed to defend against surface, air and ballistic missile threats. This also reflects a greater perception of the need for readiness against a peer adversary such as China.

The same company also nabbed a contract worth $250 million with Mitsubishi Electric Corporation of Japan for manufacture under license of the Evolved Sea Sparrow missile Block 2. Raytheon will supply missile kits and components to Japan. The Sea Sparrow missile has equipped US Navy warships for decades as a standard anti-aircraft weapon. The Evolved Sea Sparrow has gone on to be deployed aboard the frigates of other navies, notably Greece and Denmark.

The US government under Trump has also taken a stake worth $8.9 billion in the semiconductor manufacturer Intel. This might appear as a State sponsored action, but reflects huge concern within the United States that the country could easily fall behind in the technological race. The stake amounts to 10% of Intel’s common stock. Intel has struggled to invest in more chip manufacturing capacity whilst its rival Nvidia has achieved a net corporate worth of over $4tn. Intel is only worth $100 billion. This has certainly focused minds in the continental USA on how to attract more investment into semi-conductors and build more capacity in the sector.

(see www.bbc.co.uk/business)

Mark Sandford - Permission granted to freely distribute this article for non-commercial purposes if attributed to Mark Sandford, unedited and copied in full, including this notice.

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