Trends and Challenges in the Aerospace and Military Sector

Global defence is entering a new phase. Across Europe, the UK, and North America, military spending is rising sharply. Russia’s invasion of Ukraine, tensions in the South China Sea, and new forms of hybrid warfare have placed supply chains and technological capability at the centre of many national government strategies. Behind this shift lies a material more influential than steel, oil, or rare earths: the semiconductor.

Semiconductors are the foundation of modern defence systems. They power radar and communications, guide autonomous aircraft, and process the data that underpins command and control. Yet while Western nations have renewed their focus on domestic defence manufacturing, semiconductor production itself remains concentrated in East and Southeast Asia. This makes sourcing, verification, and continuity the defining challenge of the decade.

Semiconductors as strategic assets

The pandemic, followed by large geopolitical events, revealed how fragile the global chip supply had become. A single disrupted shipment could delay an entire aircraft programme. For defence ministries and aerospace manufacturers, access to semiconductors is now as strategically important as access to energy. Governments have responded with the EU Chips Act and the UK’s semiconductor strategy, both designed to strengthen regional resilience. Yet despite these initiatives, most advanced manufacturing still takes place in Taiwan, South Korea, and Japan.

That imbalance means companies like Rebound are vital to bridging the gap between global production and domestic manufacturing. Their role is not to produce chips, but to protect the flow of them, sourcing, verifying, and supplying components that meet stringent aerospace and military standards.

Advanced materials for extreme environments

The future of semiconductor manufacturing lies in materials engineered for durability. Silicon carbide and gallium nitride, once niche, are now central to the development of high-performance systems capable of withstanding extreme temperatures and radiation. These compounds are used in radar arrays, propulsion systems, and satellite communications, applications where reliability can mean survival.

Most of this innovation still happens in Asia, but Western demand is accelerating. The challenge is ensuring that these specialised components reach defence manufacturers securely and with full traceability. Rebound’s sourcing network allows clients to access verified parts with clear provenance, an increasingly critical factor in defence procurement.

Security, provenance, and trusted sourcing

In today’s geopolitical climate, the question is no longer whether a component works; it’s whether it can be trusted. Counterfeit and unverified chips present serious risks to national security. As a result, defence contractors are demanding complete supply visibility, from manufacturer through to integration.

Rebound provides that assurance through rigorous testing, inspection, and documentation aligned with AS9120 and ISO quality standards. In sectors where regulatory compliance and confidentiality overlap, that degree of verification is the difference between a component being accepted or rejected.

AI, edge computing, and mission-critical autonomy

Defence systems are increasingly intelligent. From predictive maintenance in fighter aircraft to real-time battlefield analytics, advanced semiconductors now enable on-board processing that once required a data centre. The shift toward edge computing allows drones, satellites, and autonomous vehicles to make decisions independently of ground control.

This intelligence, however, amplifies dependency. Each of these systems relies on reliable processors, sensors, and memory components. Rebound’s role is to ensure those parts remain available, compliant, and compatible with existing systems – bridging the technological leap between legacy equipment and next-generation design.

A fragile global supply chain

Semiconductors have become the choke point of global industry. Natural disasters, export restrictions, or political unrest can halt production overnight. The majority of high-end chips are still manufactured in Asia’s “Silicon Shield”, a concentration of foundries in Taiwan (which make up around 60% of the world’s supply of semiconductors) and the surrounding region.

For Europe’s aerospace and defence industries, this creates unavoidable exposure. Supply continuity now depends on sophisticated inventory management and diversified sourcing. Rebound’s footprint across 20 countries allows it to anticipate bottlenecks, identify alternative suppliers, and maintain the continuity that keeps critical manufacturing on track.

Lifecycle and obsolescence management

Aerospace and military programmes often run for decades, yet the average semiconductor lifecycle is just a few years. Once a component is discontinued, replacing or redesigning it can be costly and time-consuming. In mission-critical industries, it can also ground aircraft or stall production.

Rebound’s predictive procurement tools and global network address this problem directly. By monitoring obsolescence trends and identifying suitable replacements early, the company helps defence contractors maintain readiness while minimising disruption.

Sustainability and ethical procurement

Sustainability is no longer absent from the defence conversation. Semiconductor fabrication is energy-intensive, and environmental standards are tightening globally. Manufacturers are investing in cleaner production methods, water recycling, and renewable-powered fabrication plants (fabs). Rebound aligns with partners who share these priorities, ensuring clients can meet compliance requirements without compromising performance or security.

Resilience over control

The future of semiconductor manufacturing will not be defined by who produces the chips, but by who can source them securely and sustainably. Europe and the UK may not rival Asia’s fabrication capacity, but they depend on it, and that dependency makes intelligent sourcing a strategic asset. Rebound Electronics sits at the centre of that global network, drawing on long-standing relationships with trusted suppliers across Southeast Asia to keep production lines moving. Through rigorous verification, quality control, and lifecycle management, Rebound ensures that every component entering the defence and aerospace supply chains is authentic, traceable, and ready for deployment. In an era where security begins at the component level, control of the supply line is just as critical as control of the technology itself.