(MENAFN) The British military is facing potential disruptions to its defense projects due to the recent cessation of operations by one of the United Kingdom’s largest microchip manufacturers, Coherent. The company, a US-based firm with its main office in Pennsylvania, operates a substantial 29,000 square-meter facility in Newton Aycliffe, County Durham. According to the Telegraph, the factory's ability to fulfill new orders has been severely compromised after tech giant Apple terminated its contract with Coherent.

Apple's decision, announced earlier this year, was driven by changes to the FaceID features in its upcoming iPhone model, which rendered Coherent’s microchips obsolete. This contract termination led Coherent United Kingdom to halt its supply to the major customer at the end of the 2023 financial year. The impact has been profound, with the plant already laying off hundreds of employees and facing an uncertain future.

The ramifications extend beyond the immediate economic impact, posing a significant risk to the United Kingdom's defense capabilities. The Newton Aycliffe facility has been a key supplier of microchips for Italian defense conglomerate Leonardo. Leonardo produces critical components for the United Kingdom, including radar systems, electronic warfare systems, and helicopters. Notably, Coherent's chips were used in radar power amplifiers for the Eurofighter Typhoon jets, which are integral to British defense operations. Leonardo is responsible for about 60 percent of the avionics for these aircraft.

With the factory's future in jeopardy and the loss of a major customer, the British military's supply chain for essential defense technology is now at risk. The potential sale of the facility could further disrupt the flow of critical components needed for various defense projects, highlighting the broader implications of the factory’s shutdown on national security.

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