Interview, Podcast
CEOs of Epirus & Galvanick on the Future of Defense & Cybersecurity
- The U.S. aims to match China's manufacturing volume by 2027, moving beyond a "me-too" replication of Chinese production lines for computers and drones to leverage superior "clever" tactics using military-grade radar and gallium nitride on commercial off-the-shelf systems.
- Current U.S. drone production capacity stands at approximately 50,000 units annually, while China is projected to achieve a rate of 60 million units per year, necessitating a strategic shift away from mass-versus-mass warfare.
- Epirus expects to complete four second-generation systems with approximately 2.5 times the range of Generation 1 units within the same physical footprint, targeting a fully mission-capable prototype ready for scale, production, and overseas deployment.
- Epirus anticipates receiving orders for dozens to hundreds of systems within the next two years, which will strain current U.S. manufacturing capacity for high-powered microwave amplifiers, a capability that must be rebuilt to volumes last seen in the early 2000s for cell phone base stations.
- Official testing of Epirus Generation 2 systems is scheduled for the U.S. Army in January or February, a milestone expected to potentially trigger volume ordering by Department of Defense branches.
- The "sixth domain" of warfare is projected to drive U.S. reindustrialization by repatriating consumer electronics manufacturing, potentially requiring mandates for defense systems to utilize exclusively domestic-made computers, as no American-made computers are currently available for direct purchase.
- The new administration is expected to facilitate defense programs and risk-taking more easily than previous administrations, with a mid-30s percent probability assigned to a new free trade agreement with China due to a lack of urgency.
- Cybersecurity challenges include a workforce of fewer than 10,000 Americans qualified for OT security roles, with training cycles taking years, while the Chinese Communist Party continues to pre-position actors to disrupt U.S. critical infrastructure including water, power, and transportation.
- Automation is projected to reduce security investigation creation times from hours, days, or weeks to approximately two to five minutes, and the U.S. government does not expect to mandate security clearances for top AI employees this year.