Latest news with #E-7
Axios
6 days ago
- Business
- Axios
Exclusive: Northrop plans to quadruple chip output by 2030
There's a chip factory tucked between Baltimore city limits and BWI Airport. For something so high-profile, it's easy to miss. Why it matters: Northrop Grumman's Advanced Technology Lab in Linthicum Heights, Maryland, is pumping out precious, microscopic components at a time of surging stateside demand, questionable defense-industrial base fitness and broader international aggression. The company's chips can be found in F-16 and E-7 aircraft, Apache helicopters, G/ATOR radars, naval electronic warfare systems, drones, the James Webb telescope and more. Driving the news: Axios toured the lab — sterile "bunny suit" and all — in late July. The intrigue: Northrop is positioning itself as a domestic expert that plays well with others, including other defense contractors. That means greater supply chain visibility for buyers and users as well as cooperation with competitors. "The company sees a lot of value in us being able to supply our microelectronics capabilities to benefit the national interest. That's national security. That's economic security," David Shahin, senior manager of Northrop's microelectronics center, said in an interview. Zoom in: The company is bullish on advanced packaging, a process that consolidates component footprints, ultimately saving space and boosting performance. Think of it like mixed-use versus single-family residential zoning. "The promise of advanced packaging for microelectronics is now you can fabricate the best chips wherever you need to," Shahin said, "and you can join them together into something that puts the whole system ... into something that is a fraction of the size."
The Star
04-08-2025
- Business
- The Star
High-value orders lift outlook for S. Korean shipbuilders
A liquefied natural gas carrier built by HD Korea Shipbuilding & Offshore Engineering Co SEOUL: South Korea's major shipbuilders – HD Hyundai Heavy Industries, Samsung Heavy Industries and Hanwha Ocean – are set to post stronger profit growth over the coming quarters, as high-margin gas carrier orders placed since 2023 begin to flow into their earnings. These liquefied natural gas (LNG), ammonia and liquefied petroleum gas carriers, typically priced more than 10% higher than earlier contracts, are expected to sharply boost shipyard profitability amid stabilising construction costs. HD Hyundai Heavy Industries is already seeing the impact. The shipbuilder last Thursday reported a 141% surge in operating profit to 471.5 billion won or about US$339mil for the April-June quarter, while revenue climbed 6.8% to 4.15 trillion won. Analysts at IBK Securities said the turnaround is being driven by LNG carriers ordered in 2023, which have started contributing to revenue. Currently, orders for gas carriers secured from 2023 account for 29% of HD Hyundai's sales – a figure expected to rise to 60% by year-end. The company's order backlog, 70% of which consists of gas carriers, covers about three years of production, suggesting elevated earnings will persist through at least 2026. Most of the high-value contracts have yet to be fully reflected in financials, as it typically takes two to three years for orders to be recognised. Samsung Heavy and Hanwha Ocean are on similar trajectories. Analysts expect their LNG carrier orders from 2023 to begin contributing to earnings late this year and early next year, respectively. Gas carriers account for more than 60% of both firms' backlogs. Prices for 174,000-cubic-m LNG carriers have continued to climb, reaching US$259mil in 2023 and US$263mil in 2024, up from US$232mil in 2022 and significantly above the US$210mil average seen in Qatar's bulk orders from 2022. Those Qatari deals still represent a sizeable portion of revenue – about 37% for HD Hyundai, 27% for Samsung Heavy and 24% for Hanwha Ocean. Analysts said input costs are not rising at the same pace, thanks in part to a more stable labour market. 'It has been over two years since foreign workers entered domestic shipyards on E-7 and E-9 visas. Their skills have improved, helping to stabilise labour costs,' said Oh Ji-hoon, an analyst at IBK Securities. Some analysts caution that rising ship prices alone may not guarantee wider margins, pointing to fluctuating steel pricing, a key input cost in shipbuilding. — The Korea Herald/ANN
Korea Herald
03-08-2025
- Business
- Korea Herald
High-value gas orders lift Korean shipbuilders' profit outlook
South Korea's major shipbuilders ― HD Hyundai Heavy Industries, Samsung Heavy Industries and Hanwha Ocean ― are set to post stronger profit growth over the coming quarters, as high-margin gas carrier orders placed since 2023 begin to flow into their earnings. These liquefied natural gas, ammonia and liquefied petroleum gas carriers, typically priced more than 10 percent higher than earlier contracts, are expected to sharply boost shipyard profitability amid stabilizing construction costs. HD Hyundai Heavy Industries is already seeing the impact. The shipbuilder on Thursday reported a 141 percent surge in operating profit to 471.5 billion won ($339 million) for the April-June quarter, while revenue climbed 6.8 percent to 4.15 trillion won. Analyst at IBK Securities and the turnaround was driven by LNG carriers ordered in 2023, which have started contributing to revenue. Currently, orders for gas carriers secured since 2023 account for 29 percent of HD Hyundai's sales ― a figure expected to rise to 60 percent by year-end. The company's order backlog, 70 percent of which consists of gas carriers, covers about three years of production, suggesting elevated earnings will persist through at least 2026. Most of the high-value contracts have yet to be fully reflected in financials, as it typically takes two to three years for orders to be recognized. Samsung Heavy and Hanwha Ocean are on similar trajectories. Analysts expect their LNG carrier orders from 2023 to begin contributing to earnings in late 2025 and early 2026, respectively. Gas carriers account for more than 60 percent of both firms' backlogs. Prices for 174,000-cubic-meter LNG carriers have continued to climb, reaching $259 million in 2023 and $263 million in 2024, up from $232 million in 2022 and significantly above the $210 million average seen in Qatar's bulk orders from 2022. Those Qatari deals still represent a sizable portion of revenue ― about 37 percent for HD Hyundai, 27 percent for Samsung Heavy and 24 percent for Hanwha Ocean. Analysts said input costs are not rising at the same pace, thanks in part to a more stable labor market. 'It has been over two years since foreign workers entered domestic shipyards on E-7 and E-9 visas. Their skills have improved, helping to stabilize labor costs,' said Oh Ji-hoon, an analyst at IBK Securities. Some analysts caution that rising ship prices alone may not guarantee wider margins, pointing to steel pricing, a key input cost in shipbuilding. Thick steel plates, heavily used in both ships and buildings, are particularly sensitive to trends in China's construction sector, which remains sluggish. Lower steel prices, while a headwind for steelmakers, could help support shipbuilders' profit margins as they work through their high-value gas carrier backlogs. 'Real estate investment in China fell 10.7 percent year-on-year between January and May, while new housing starts dropped 21 percent,' said one industry analyst. 'Unless there's a meaningful recovery in China's property market, demand for thick steel plates will likely stay weak. Even with recent steel production cuts, I don't expect a sharp rebound in prices.'
Euractiv
01-08-2025
- Business
- Euractiv
FIREPOWER: Trump sparks NATO surveillance aircraft rethink
Take a free trial of Euractiv Pro to get FIREPOWER in your inbox. Good afternoon and welcome back to Firepower, This week, we look at a very concrete example of how US defence policy impacts European security. A Pentagon rethink of its planned purchase of surveillance aircraft is forcing NATO to reconsider its own options. We also dig into how much SAFE money EU countries are seeking - spoiler alert: more than is available. There's also a debrief on what we know (and don't know) about the EU-US trade deal's implications for the defence sector, and Germany's record €108 billion annual defence budget proposal. Plus, updates on the first EU country to ban arms trade with Israel. Exclusive: NATO taking another look at surveillance aircraft pick NATO is rethinking its choice to buy a fleet of Boeing E-7 surveillance aircraft by 2035 to be the alliance's eyes in the sky in Europe and replace the ageing AWACS, Firepower has learned. That comes after the Pentagon announced plans to cancel US orders for the E-7, citing high production costs and concerns about the jet's future survivability. As a result, a spokesperson for NATO's procurement agency, the NSPA, told Firepower that the plan as 'as a whole is being assessed'. The Pentagon's rejection of the E-7 for the US military raises questions about whether the Trump administration will still agree to contribute financially toward purchasing 14 of the aircraft for NATO – or if the bill will be left to the seven participating European allies . Lower total E-7 orders thanks to American cancellations would also likely drive up the price per aircraft for the remaining customers, including NATO. The NSPA plans to give an update 'towards the end of September' that will 'include the division of cost across the participating nations'. The spokesperson said that NATO and participating countries are 'evaluat[ing] the available options'. Buy local instead? The current scramble to figure out the E-7's future shows just how much Europe's security policy still hinges on political decisions in Washington. It remains unclear at this stage if the remaining NATO countries might be interested in picking a European aircraft instead of the E-7. Saab, which previously pitched its GlobalEye to the military alliance, told Firepower they remained confident their aircraft remains an 'excellent' option. Douglas Barrie, an aerospace analyst at the IISS think tank, told Firepower that other options include sticking with the existing AWACS for now and following the US in their future choice sometime in the mid-2030s, going for a new 'clean-sheet design' or taking a 'wait-and-see' approach, since the potential E-7 cancellation hasn't passed the US Congress yet. On your radar: EU countries want almost €200 billion from SAFE; UK still sidelined This week, 18 EU countries have put in initial requests for SAFE funds by Tuesday's initial soft deadline . Firepower dug into what capitals are asking for, and some initial ideas of how to spend it. According to our sources and estimates, the club of 18 actually asked for a good bit more than the €150 billion total available for loans, when considering the top end of the requests they sent in. Gone are the days where the Commission was not sure they'll spend the whole pot. The Commission put the total requested at € 127 billion on Wednesday. But submissions included a minimum and maximum range, and Euractiv understands that the Commission's figure was based on the low end of their requests. The EU executive is not stopping there, though. It is sending out a letter to nudge the club of countries which have not given in their request to do so fast. The SAFE programme is also making waves across the pond, with EU Defence Commissioner Kubilius telling Firepower that he saw 'strong interest among American industry' during his recent US visit. Canada has reportedly shown interest in participating . However, the process is not that easy, as the UK's efforts to negotiate access demonstrate. The Commission could send a proposal next week to the EU countries as a basis to start negotiations with the UK, but don't expect those to start in peak holiday season, we're told. Israel-EU tensions rise Slovenia became the first EU country to impose a full ban on weapons trade on Israel on Thursday. The ban also prohibits the transit of any weapons through Slovenia on their way between Israel and elsewhere. Meanwhile on the European level, Israel's potential exclusion from key parts of the EU Horizon Europe research fund now hinges in large part on Germany and Italy. Neither have taken a position on the Commission's proposal, which would cut funding to Israel for dual-use technologies that have potential military applications. Israeli state-owned arms maker Rafael notably attracted attention by posting a video on X where a drone killed a person in Gaza. As the EU Observer highlighted , that could cause Israel to get kicked out of the EU programme. Germany, Europe's largest arms exporter to Israel and the buyer of Israeli-made air defence systems, wants more time to consider its position. A decision to back the Commission would move the needle towards a qualified majority – but that's unlikely to come before Foreign Minister Johann Wadephul returns from a visit to Israel later today. A decision on whether to partially exclude Israel from Horizon Europe could be taken later this summer, one diplomat said.
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First Post
09-07-2025
- Politics
- First Post
Alarmed by China's Taiwan game, retired US generals urge funding for E-7 Wedgetail, more F-35s
'If conflict does come, there will be no more decisive question than who controls the skies over the Pacific,' they wrote. 'The actions Congress takes this year… could be critical in deterring and, if necessary, prevailing in near-term conflicts' read more US Air Force fighter aircraft F-35 performs aerobatic maneuvers in Bengaluru. Each F-35 costs approximately $36,000 per flight hour, making it one of the costliest jets to operate. File image/AP A group of senior retired United States Air Force generals have urged Congress to fund the procurement of 75 F-35A fighter jets and fully restore funding for the E-7 Wedgetail command-and-control aircraft in the upcoming fiscal year, warning that any delay could impair the US military's ability to respond to an escalating threat from China, particularly over Taiwan. In a letter addressed to congressional leaders including Speaker Mike Johnson and Senate Majority Leader Chuck Schumer, the Air & Space Forces Association (AFA) said it was 'alarmed' by recent proposals to cut the F-35A buy to just 24 aircraft and to terminate the E-7 program entirely. The letter, signed by over a dozen former top commanders including multiple former USAF Chiefs of Staff, said such moves would 'severely and unnecessarily undermine our service members' ability to deter, and if necessary, prevail in future conflicts.' STORY CONTINUES BELOW THIS AD Citing the growing urgency around Taiwan, the retired generals referenced Chinese plans to achieve the capability for a successful amphibious assault on the island by 2027. 'If conflict does come, there will be no more decisive question than who controls the skies over the Pacific,' they wrote. 'The actions Congress takes this year… could be critical in deterring and, if necessary, prevailing in near-term conflicts.' F-35As: Combat-proven and urgent The letter emphasised the need to reach the Air Force's requirement of 1,763 F-35As, calling the aircraft critical to modern combat operations. It cited the fighter's role in Operation Midnight Hammer and Israel's use of the F-35 to defeat Iranian air defences as recent proof of its decisive capabilities. While acknowledging past development challenges, the letter pointed to the near completion of the aircraft's Tech Refresh 3 upgrade, which includes significant hardware and software improvements. 'The hardware and software upgrades are now available enabling even greater improvements in the F-35,' the signatories said. The letter also cited a surge in foreign interest in the jet as evidence of its credibility. The United Kingdom, Italy, Netherlands, Belgium, Poland, Romania, Greece, Czech Republic, and Finland have all expanded or committed to F-35A procurements. E-7 Wedgetail 'cannot be replaced' by stopgaps Turning to the E-7, the generals pushed back against the proposal to terminate the Wedgetail in favour of acquiring more E-2 Hawkeye aircraft, calling it a 'stopgap' that would not meet theatre-wide airborne command and control requirements. They noted that allies including the United Kingdom, Australia, South Korea, Turkey, and Nato have all adopted the E-7 for its modern capabilities, and that Britain even reversed plans to reduce its fleet of the aircraft in its latest Strategic Defence Review. 'Having a robust tracking and battle management system is fundamental to projecting air power and winning conflicts,' the letter said, while acknowledging that a future space-based command system under development by the US Space Force is still far from operational. The letter praised the House Appropriations Committee for proposing funds for 42 F-35As and $500 million in additional E-7 development, but called for full restoration of the E-7 programme and procurement of 75 F-35As. STORY CONTINUES BELOW THIS AD 'Time is of the essence' The authors, including Generals Joseph Ralston, Merrill McPeak, Michael Ryan, Philip Breedlove, Lori Robinson and others, stressed that the window to prepare for a potential Chinese offensive on Taiwan is narrowing. 'China has committed itself to being able to achieve, in two short years, the successful amphibious assault of Taiwan,' they warned. 'Time is of the essence.' The letter called on Congress to take 'decisive' legislative action in the Fiscal Year 2026 defence budget to ensure US air dominance is not jeopardised in the Indo-Pacific.
