Defence Semiconductor Market To Maintain Growth
According to Strategy Analytics, revised projections still indicate CAGR of over 6% through 2015.
While trying to save more than $150 billion over the next five years, the US Department of Defence will focus on technology which will translate into continued development on radar, EW (Electronic Warfare), communications and other advanced defence capabilities.
Strategy Analytics’ Advanced Defence Systems (ADS) service report, “US DOD Budget Cuts will Place Emphasis on Advanced Electronics Capabilities," predicts that this continued emphasis will translate into an upwards defence sector semiconductor market growth trajectory over 2010 - 2015 with a CAGR (compound annual growth rate) of over 6 %.
These efficiency decisions are designed to save the Department of Defence more than $150 billion over the next five years primarily by reducing overhead costs, improving business practices and culling excess or troubled programs.
Most of the resulting savings will be used by the Army, Navy, Marine Corps and Air Force to invest in high priority programs that strengthen warfare capability.
“Despite defence budget growth dwindling to zero by 2015, there is recognition that the mistakes of the past should not be repeated by making drastic cuts to the overall defence budget," stated Asif Anwar, ADS Service Director. “Progress made by China and Russia will require that the US continue its focus on technology".
“Investment in high priority programs that strengthen fighting capability will translate into continued development on radar, EW, communications and other advanced defence issues," noted Eric Higham, ADS Service Director North America. “Strategy Analytics believes that this will maintain demand for semiconductors with a particular emphasis on technologies such as GaAs, GaN and SiGe (Silicon Germanium)."