Mercury Selected to Improve U.S. Defense Supply Chain Resilience for Priority Domestic Microelectronics Technology | MRCY Stock News

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Jul 02, 2025
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  • Mercury Systems (MRCY, Financial) has secured a $8.5 million contract from the U.S. Department of Defense to develop advanced radar technology.
  • The project aims to reduce the size, weight, and power requirements of radar systems by over 80%.
  • The contract will span two years and focus on enhancing producibility and affordability for high-volume military applications.

Mercury Systems, Inc. (MRCY) has been awarded a two-year, $8.5 million contract by the U.S. Department of Defense (DoD) under the Industrial Base Analysis and Sustainment (IBAS) Program. The contract focuses on the development of a next-generation RF signal conditioning multi-chip package (MCP) designed for X-band Active Electronically Steered Array (AESA) radars.

This innovative project undertaken in collaboration with Systems Innovation Engineering aims to significantly enhance radar capabilities by reducing the size, weight, and power consumption by more than 80% compared to current technologies. The ultra-compact signal conditioning package will leverage Mercury's expertise in microwave and mixed signal technologies to deliver a scalable and high-performance solution.

The development aligns with the DoD's strategy to bolster domestic supply chains for critical defense components, decreasing reliance on foreign sources amid rising geopolitical tensions. This contract positions Mercury favorably for future defense opportunities, as it will support high-volume missions with improved producibility and affordability.

Mercury Systems, headquartered in Andover, Massachusetts, offers mission-critical processing solutions for aerospace and defense applications. The company's products are currently deployed across more than 300 programs in 35 countries, underlining its global footprint in the defense sector.

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I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.