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In view of geopolitical tensions and increasing defense spending, the defense electronics specialist HENSOLDT is continuing to expand its industrial base.

• HENSOLDT secures the supply chain for semiconductors
• Long-term agreement with UMS
• HENSOLDT CFO: Important building block for series production of modern radar systems

As HENSOLDT announced in a press release on Wednesday, a long-term semiconductor agreement has been concluded with United Monolithic Semiconductors (UMS), which is intended to strengthen the resilience of the supply chain and support the expansion of production capacities in view of the rapidly increasing global demand for sensor solutions. As part of the agreement, UMS is expected to deliver a total of 900,000 gallium nitride (GaN) semiconductor components to be installed in HENSOLDT radar systems by 2030.

HENSOLDT strategically secures the supply chain

These components are of central importance for modern radar technology: They enable powerful high-frequency amplifiers and make a decisive contribution to the range, precision and energy efficiency of HENSOLDT radar systems, according to the statement. The components are developed and tested in close collaboration between both companies – an indication of the strategic depth of the partnership.

The in-house SPEXER radar family in particular should benefit from the secured supply. HENSOLDT is thus addressing one of the industry’s central challenges: the dependence on highly specialized semiconductors in a tense global supply environment.

Supply agreement in response to increasing demand

Global demand for sensor solutions and military electronics has been increasing significantly for years – driven by increased defense budgets in Europe and geopolitical uncertainties. HENSOLDT itself has a record high order backlog and is investing heavily in expanding capacity in order to be able to meet this demand, while at the same time securing the supply chains, said HENSOLDT CFO Christian Ladurner according to the press release. “The long-term agreement with UMS is an important component of this strategy and supports the expansion of series production of modern radar systems that are used worldwide for air defense and security applications,” the CFO is quoted as saying.

This is how the shares of HENSOLDT and Co. react.

In Thursday trading via XETRA, the HENSOLDT share ultimately fell by 5.77 percent to 79.15 euros. The other German armaments titles are also going downhill. The shares of German industry colleague Rheinmetall ultimately lost 3.46 percent to 1,550.00 euros, while RENK shares fell by 4.82 percent to 54.51 euros. Papers from TKMS were also 2.51 percent lower at 85.40 euros in XETRA trading.

Carolin Ludwig, Benedict Kurschat, Julia Walter, editorial team finanzen.net

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