Italy's Leonardo optimistic about partnership with UAE's Edge Group

Lorenzo Mariani, co-general manager of the Italian aerospace and defence sector giant Leonardo, sat down with The National at the Idex defence expo in Abu Dhabi to talk about the company's expanding ventures in the Middle East, including the "strategic agreement" announced this week with the UAE's Edge Group. Leonardo and the Edge Group, a technology conglomerate with a reputation for advanced unmanned air and ground systems and armoured vehicles, share similar visions, Mr Mariani said. Both organisations showcased a range of new military capabilities at Idex, from Leonardo's next-generation AW249 attack helicopter, which is designed to be paired with drones, to Edge Group and Milrem Robotics' joint project Havoc, an eight-wheel drive uncrewed vehicle that can carry nearly five tonnes up to 600km. Both machines are at the leading edge of what is sometimes called manned-unmanned teaming, which envisions networks of ground and aerial drones disrupting enemy positions while keeping the assaulting force in relative safety. 'What really excites me is that Edge Group is really enthusiastic about technology. They really want to develop new technology and to be a reference point, not only for the UAE, but also for other countries in the region in terms of exports, so bringing concrete benefits to their country and the whole area,' Mr Mariano said. 'Secondly, they have a real spirit of co-operation. And I think this is key, because in today's world, that is moving very fast, unfortunately, due to external events and conflicts, changing from day to day, co-operation is key. That's not just relating to new threats but new technologies too.' The Leonardo-Edge agreement will focus on "the design of cutting edge, complex systems in disruptive sectors with significant market potential", a press release said. Hamad Al Marar, Edge Group managing director and chief executive, said it was a "win-win" and would build "on the strong relationship between the UAE and Italy". The Leonardo industrial group, which traces its history through decades of ambitious Italian and European technology ventures, has deep experience in multinational, multi-company projects including the Eurofighter Typhoon, the Airbus A380 and the International Space Station. But there are equally important breakthroughs it can point to, from working on next-generation radars to hyperspectral sensors in space, which can examine the chemical composition of different parts of the Earth's surface from orbit. More recently, it has expanded into what is arguably the most complex field of innovation, semiconductor fabrication, where progress is measured at the near-invisible nanoscale. 'Traditionally we've been focused on co-operation in Europe, sharing our missile activities with Airbus and BAE Systems, now recently sharing our tank competencies with Rheinmetall. But I think now in key fields such as air defence, artificial intelligence, cyber and such domains, we have to find alternatives and more agile ways of co-operation. Edge is really on the same frequency,' he said. In December, Leonardo formalised a joint project with BAE Systems and the Japanese aeronautical company Jaiec to work on the Global Combat Air Programme, an ambitious project to field a next-generation fighter jet, sometimes referred to as a sixth-generation jet. These are typically imagined to be enabled by a high level of autonomy, or AI, operating as control aircraft for fast, stealthy attack drones. They are often characterised by powerful electronic warfare capabilities that can be rapidly upgraded or even reprogrammed in-flight. To secure this high-tech vision, defence planners are increasingly focused on supply chains of the best microchip or semiconductor technology. The UAE is a massive investor in AI, the brains of which are the world's 'leading edge' chips. Last week, France and the UAE announced a partnership for joint AI-focused data centres. In modern warfare, chip technology has often trailed behind civilian tech but increasingly this is no longer the case. The best chips are required for autonomous systems – drones which use computer vision – rapidly processing vast amounts of data to fly and find targets on their own. Other leading edge chip applications in war involve using AI to help quick decision-making under fire, in environments where soldiers could come under attack from fast-moving drones, while monitoring multiple sources of data such as video feeds and early-warning systems. Some projects in the US envision entirely AI-led dogfights. A key concern is that the supply chains for these chips are contested by world powers, and that in the next big conflict there may not be enough raw materials and manufacturing capacity for the best semiconductors. One material often mentioned in the defence sector is gallium nitride, a critical material for building energy-dense semiconductors with high heat tolerance and high efficiency. Gallium nitride semiconductors are vital for Active Electronically Scanned Array radars – essentially 'smart' radars that can shape and rapidly move multiple radar beams at once, taking on different tasks, and even deceiving or jamming enemy radar. Leonardo was one of the first companies to work on Aesa technology in the 1990s. Right now, the defence sector accounts for only about 15 per cent of the demand for gallium nitride, but that is set to change. 'Semiconductors are a key element that is crucial for defence and civilian industry. Let's remember that a good portion of the issues facing the automotive industry during the Ukrainian conflict and Covid were related to the free movement of ships and supply chains. Demand for semiconductors in the civilian market is much higher than for defence, but defence is strategic, of course," Mr Mariani said. 'For semiconductors Leonardo has always considered the foundry activity as a core one, we traditionally have our internal foundry, at least to manage at design level, key elements of our radar, key elements of our electronic warfare equipment, and even in the UK, for the infrared detectors. So we were really taking care of the in-house component.' Like the UAE, Italy is making its own strategic investments in securing its share of the semiconductor supply, chain and last year the government announced $10.7 billion to boost local manufacturing and related processes such as advanced packaging, which refers to the highly delicate process of integrating and protecting tiny chips into systems. 'We have in place key investment already and in progress, in order to ensure that a basic capacity, and a basic sovereign capability and secure supply is guaranteed to Leonardo for key equipment,' Mr Mariani said. 'Of course, the quantities for production often demand larger installations, larger equipment, and in that case we still rely a lot on Taiwan, for example.' Mr Mariani is optimistic on the combined vision of Leonardo's partnership with Edge. 'It's important to identify practical elements for the collaboration. For sure, we want to always be strategic in our collaborations, so as to find the long-term goal. But then the key for the success of the collaboration is to also find short-term projects, short-term products, short-term customers, to apply the fruit of this collaboration. And that has always been our strength,' he said.

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