Semiconductors in military and aerospace electronics

22 February 2006 News

In terms of the military and aerospace market, electronics is one of the few segments that has not yet reached a mature stage, which indicates a favourable outlook for semiconductor suppliers. There is expected to be a higher growth year for this market this year, with revenue likely to reach $2,46 bn – a 5% increase over last year, according to a Databeans forecast for military and aerospace semiconductors.

The Americas region is the leading producer of military and aerospace semiconductors by far, producing 53% of the industry revenue share. This is expected as global defence spending is dominated by the Americas with a 45% share, followed by Europe with 15%, Russia with 7%, China with 6%, and Japan with 5%, and 22% for the rest of the world, says the analyst firm.

Significantly, global spending on military and aerospace will exceed $1 trillion again in 2006, with the US alone contributing about a 44% share.

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