05 Apr 2023 -

Defence funding will renew the scramble for components


Defence contractors who are awaiting funding approval for Ukraine initiatives will cause a scramble to source semiconductors and other hard-to-find electronic components, potentially upending supply chains again, disrupting production, and driving up manufacturing costs, claims Automotive insiders, Motor1.

While semiconductor supply has improved in recent months due to a drop in the demand for personal computers and other home electronics, Defence funding will renew demand and put pressure on an electronics supply chain which has only recently shown signs of stabilising.

The US is the largest provider of military assistance to Ukraine, having committed $33.2 billion since the start of the Biden administration. $32.5 billion of that assistance has been provided since February 2022. Companies that make military weapons like the shoulder-fired Javelin and Stinger missiles used in Ukraine are awaiting U.S. funding. Earlier this year, The Pentagon sent 12 Air Force F-22 Raptors to support NATO Allied Air Command at the 32nd Tactical Air Base in Lask, Poland.

The German government has agreed to send an additional 12 billion euros ($13.01 billion) worth of military support to Ukraine. Since the start of the Russian invasion, the German government has made available more than 14.2 billion euros in support for Ukraine, according to the foreign office.

The UK has committed £2.3 billion in military assistance to Ukraine so far and has pledged to match that assistance in 2023. The UK is also hosting a training programme (Operation Interflex), which is supported by several allies, with the aim of training 30,000 new and existing Ukrainian personnel by the end of 2023.

The European Union is also providing non-lethal and lethal arms through its European Peace Facility (EPF). This is the first time the bloc has, in its history, approved the supply of lethal weapons to a third country. To date, the EU has committed €3.6 billion. In March 2023 the EU agreed that a further €2 billion of EPF funds would be used to support the provision and/or joint EU procurement of urgently required artillery ammunition.

To avoid electronics supply-chain disruptions, you may also wish to consult an expert in electronics component supply. With more than three decades of supply-chain expertise, Astute Electronics is ideally placed to work with you on your daily component requirements.

For more help with looking at supply chain options, contact Astute Electronics

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