April 28, 2020 | International, Aerospace, Naval, Land, C4ISR

Global defense spending sees biggest spike in a decade

WASHINGTON — Global defense spending hit $1.917 trillion in 2019, a 3.6 percent increase over previous year figures and the largest increase in one year since 2010, according to the annual report by the Stockholm International Peace Research Institute.

The United States remains the world's largest defense spender in 2019, with its $732 billion representing 38 percent of global military spending, SIPRI has reported. That was followed by China ($261 billion, at 14 percent of global total), India ($71.1 billion, at 3.7 percent), Russia ($65.1 billion, at 3.4 percent) and Saudi Arabia ($61.9 billion, at 3.2 percent).

All told, the top five nations accounted for 62 percent of overall military spending.

“Global military expenditure was 7.2 percent higher in 2019 than it was in 2010, showing a trend that military spending growth has accelerated in recent years,” SIPRI's Nan Tian said in a statement. “This is the highest level of spending since the 2008 global financial crisis and probably represents a peak in expenditure.”

Large year-over-year increases were seen in China (5.1 percent), India (6.8 percent), Russia (4.5 percent), Germany (10 percent) and South Korea (7.5 percent).

Regionally, military spending increased in Europe by 5 percent, Asia and Oceania by 4.8 percent, the Americas by 4.7 percent, and Africa by 1.5 percent. Combined military spending by the 29 NATO member states was $1.035 trillion in 2019.

SIPRI is widely considered to be the authority on military expenditures and exports, having gathered such data for decades. Other key developments, as noted by the researchers:

Together, the top 15 countries spent $1.553 trillion, 81 percent of global military spending. All but three countries in the top 15 had higher military expenditures in 2019 than in 2010, the exceptions being the U.S. (15 percent drop), the U.K. (15 percent drop) and Italy (11 percent drop.)
Total military expenditures of the 11 countries in the Middle East for which data is available decreased by 7.5 percent to $147 billion, driven in part by an estimated 16 percent drop from Saudi Arabia. That overall percentage also decreased in 2018. SIPRI was unable to calculate totals from Qatar, Syria, the United Arab Emirates and Yemen.
Military spending in South America was relatively unchanged from the previous year, coming in at $52.8 billion. Fifty-one percent of that spending, $26.9 billion, came from Brazil.
Combined military expenditures from Africa grew by 1.5 percent to an estimated $41.2 billion in 2019, the first time that region saw a spending increase in five years. That includes plus-ups in Burkina Faso (22 percent), Cameroon (1.4 percent), Mali (3.6 percent), the Central African Republic (8.7 percent), the Democratic Republic of the Congo (16 percent) and Uganda (52 percent).
Of the 149 countries SIPRI studied, 10 allocated 4 percent or more of their gross domestic product to the military, which the group defines as the “military burden.” Thirteen countries had a military burden of 3 to 3.9 percent of GDP; 24 had a military burden of 2 to 2.9 percent; 65 had a military burden of 1 to 1.9 percent; and 34 allocated less than 1 percent of their GDP to the military.
Three countries had no military expenditures in 2019: Costa Rica, Iceland and Panama.

https://www.defensenews.com/global/2020/04/27/global-defense-spending-sees-biggest-spike-in-a-decade/

On the same subject

October 3, 2018 | International, Naval

Naval Group: Talks with Australia still underway for sub buy
By: Pierre Tran PARIS — Naval Group, a French shipbuilder, sought to play down media reports of a potential collapse of talks for a major contract with Australia for 12 ocean-going submarines, with elections looming next year in the Commonwealth nation. “We are in the process of pursuing the strategic partnering agreement,” a Naval Group spokesman told Defense News. That agreement covers some 30 years and is an extremely close commitment, he added. “It is plain logic that that takes time,” he said. “We are not particularly worried. We remain confident." Naval Group is working under a 2016 design and mobilization contract on the Australian future submarine program, while negotiating the strategic partnering agreement. The latter is a critical contract which moves the French company closer to building the diesel-electric boats in Adelaide under an Australian $50 billion (U.S. $36 billion) deal. There is concern that failure to reach consensus on intellectual property and warranty conditions have held up a signing of the strategic partnering agreement, with time running out, Australian Broadcasting Corporation reported. “Negotiations on that document have stalled and it is feared they may not be resolved before next year's federal election,” ABC reported. Signing the strategic partnering agreement by the end of this year is needed to allow detailed design contracts to be finalized and building of the boats, the broadcaster reported. In Australia, Defense Minister Christopher Pyne sought to calm the waters with an Oct. 1 reply on social media. “There is no delay to the delivery of 12 Future Submarines. Negotiation of strategic partnering agreement is continuing & we will ensure we end up with an equitable & enduring agreement to deliver the capability our servicemen & women need, and get the best deal for Australian taxpayer.” Nigel Pittaway in Melbourne, Australia contributed to this report. https://www.defensenews.com/digital-show-dailies/euronaval/2018/10/02/naval-group-talks-with-australia-still-underway-for-sub-buy
August 24, 2018 | International, Aerospace

Two French defense heavyweights scoop up Dolphin chip designer
By: Pierre Tran PARIS — European missile company MBDA and microchip maker Soitec said Aug. 21 they are acquiring Dolphin Integration, a design firm for low-power chips which has fallen into receivership. The two companies will buy through a joint venture the chip maker, which filed for insolvency July 24. Dolphin Integration has designed chips which are “indispensable” for certain highly classified sectors, including the French nuclear deterrent, a defense source said. MBDA will acquire 40 percent, while Soitec will own 60 percent. MBDA and Soitec will pay a total of some €6 million (U.S. $7 million) to acquire most assets of Dolphin Integration, pay some of the liabilities and inject a significant amount of cash to meet working capital requirements, the companies said. Further details of how the acquisition amount will be shared were not immediately available. All the business and staff will be kept on, but the sale price will not cover all amounts owed to creditors, Dolphin Integration said in an Aug. 21 statement. MBDA is a strategic customer of Dolphin Integration for defense applications since 2004, the missile company said. The acquisition will strengthen its industrial collaboration and long-term commercial pipeline for application specific integrated circuit and system-on-chip products, the company added. “With the support of MBDA, Dolphin Integration will be able to advance its positions in aerospace and defense design,” the missile company said. Other key clients include Airbus Defence & Space, Safran and Thales, besides MBDA, the defense source said. Soitec specializes in chips drawing on fully depleted silicon-on-insulator (FD-SOI) technology, running on low power and at high speed. The acquisition can be seen as an “offensive” move by securing a market upstream for FD-SOI, while MBDA takes a "defensive " step by protecting a strategic supplier, the defense source said. Soitec played an active role in an industry group which lobbied the Elysée president's office to support a European Project of Common Interest, the source said. Such projects are backed by the European Commission for cross-border work on infrastructure and energy. Soitec will seek to strengthen Dolphin Integration in the semiconductor market, to develop and promote products and services in strategic sectors such as mobile devices and infrastructure, data centers, and space and industrial applications, the chip specialist said. Dolphin Integration had annual sales of €17 million for the year to March 31, 2018 and employs 155 staff, of which 130 are design engineers. The company is based in Grenoble. MBDA's interest in semiconductors has sharpened since the U.S. blocked the sale of American chips for the Scalp cruise missile sought by Egypt to arm its fleet of Rafale fighter jets. https://www.defensenews.com/global/europe/2018/08/23/two-french-defense-heavyweights-scoop-up-dophin-chip-maker
May 27, 2020 | International, Naval

Navy Wants $12 Billion for Unmanned Platforms
5/26/2020 By Jon Harper The Navy already plans to spend big on robotics platforms in the coming years. As operation and maintenance costs grow and defense budgets tighten, that trend could accelerate, analysts say. The sea service's future years defense program calls for about $12 billion for unmanned aircraft, surface vessels and underwater systems in fiscal years 2021 through 2025, according to Bloomberg Government. Senior officials have a stated goal of pursuing a 355-plus-ship fleet of manned vessels, but unmanned systems are “probably the future of the Navy,” Robert Levinson, senior defense analyst at Bloomberg Government, said during a recent webinar. About $7.9 billion in the future years defense program would go toward drones, including nearly $4.3 billion for the MQ-4C Triton maritime surveillance aircraft and nearly $1 billion for the MQ-25 Stingray aircraft carrier-launched tanker, according to his presentation slides. An additional $2.2 billion would be allocated toward unmanned surface vessels, or USVs, and $1.9 billion for unmanned underwater vessels, or UUVs. Navy plans call for spending $941 million on USVs and UUVs in 2021 alone, a 129 percent increase relative to 2019, according to the slides. Operations, maintenance and personnel costs could squeeze modernization accounts in the coming years, Levinson noted. The 2021 Navy budget request included $125.8 billion total for those categories. In comparison, the request included $57.2 billion for procurement and $21.5 billion for research, development, test and evaluation. “With this budget being especially flat, you're really seeing the tension particularly in the Navy of, ... ‘Do we spend money on buying new stuff? Or do we need to spend the money on maintaining the stuff we have?'” he said. “You can buy more ships and put more money [into that], but then you need more sailors and you need more training of the sailors,” he noted. The COVID-19 pandemic could exacerbate funding constraints and further incentivize investments in unmanned platforms, Levinson said. “The Navy is really in a tough spot” trying to achieve its force level goals, he added. However, unmanned vessels are generally expected to be less expensive to procure, operate and maintain than manned platforms, which make them attractive as the sea service invests in new capabilities, Levinson noted. Meanwhile, the Marine Corps plans to restructure its forces to take on advanced adversaries, with a heavier emphasis on robotic platforms. “That has huge implications going out into the future” for acquisitions, Levinson said. “The Marine Corps' restructuring that's been announced is probably the biggest in a generation.” https://www.nationaldefensemagazine.org/articles/2020/5/26/navy-wants-$12-billion-for-unmanned-platforms

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