Scrapped Ballistic Missile Defense Plan Could Mean Hard Times For Analog Microelectronics Makers

Recently, the Obama administration has decided to scrap its ballistic missile defense plan, which was a holdover from the Bush administration. Under the Bush plan, ballistic missile defense outposts in Poland and the Czech Republic. The ballistic missile defense outposts would have been comprised of sea-based Standard Missile 3 (SM-3) and land-based Patriot Advanced Capability 3 (PAC-3) units. Over at the Huffington Post this week, Richard Klass has a great reaction post to the Obama administration’s revision of its European ballistic missile defense architecture.

From our standpoint, the interesting wrinkle of this development is how it will impact analog signal processor and control systems. For instance, manufacturers such as MS Kennedy, who produce the motor control to the gimbal drive for the PAC-3, are sure to be disappointed with this development. If we see defense spending drop (which thus far, it decidedly has not) then we may see some under-the-radar, backbone industries falter.