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Politics : Formerly About Applied Materials

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To: StanX Long who wrote (61841)	3/10/2002 1:04:53 AM
From: StanX Long	Read Replies (1) of 70976

Defense Spending Up, But Many Parts Are Commercial Dedicated military parts often missing in action By Ed Sperling and Bernard Levine -- Electronic News, 3/11/2002 e-insite.net The defense budget is going up, but interest in building componentry and other products solely for the U.S. government is going down, way down. At a time when the whole electronics industry is digging out from one of the worst slumps in history, this may seem counterintuitive. But given the low volumes sold to the U.S. government, not to mention the massive bureaucracy, vendors of embedded systems, components and other hardware and software say the economics often don't work in their favor. The government seems to have gotten that message loud and clear. The focus in the defense establishment now is heavily on buying commercial off-the-shelf (COTS) parts or customizing off-the-shelf products with higher temperature packages or ruggedizing the assembly process, rather than relying on parts specially built to military specifications. "The problem with selling to the military is that it's done in such low volumes," said Peter Schulmeyer, director of strategic marketing for Motorola's transportation group. "That's why they reuse standard products."

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