The INSIDER daily digest -- May 3, 2024

This Friday INSIDER Daily Digest has news on the Navy needing to replenish its Standard Missile stocks in the wake of defending shipping in the Red Sea from Houthi missile attacks, plus coverage of a new Defense Innovation Unit report and more.

Navy Secretary Carlos Del Toro revealed this week that the Defense Department's decision to terminate SM-3 Block IB production -- and save $1.9 billion -- was baked into the FY-25 budget request before recent real-world events provided a showcase for the advanced guided-missile interceptor to defeat ballistic missile threats:

SECNAV: DOD needs to 'relook' SM-3 Block IB termination after Iran strike, Pacific forecast

The Navy secretary says Pentagon leaders need to reconsider plans to terminate Standard Missile-3 Block IB production in light of recent Red Sea missile defense missions, Iran's missile attack last month against Israel and the likelihood of similar engagements in a potential conflict in the Pacific.

A new Defense Innovation Unit report is out:

DIU says 10 technologies made successful transitions in FY-23

The Defense Innovation Unit released its fiscal year 2023 annual report today which noted that 10 technologies successfully transitioned from prototypes to fielded capabilities.

DIU pushes partnerships with U.S. allies

The Defense Innovation Unit's fiscal year 2023 annual report highlighted successful partnerships with U.S. allies like India, the U.K., Australia, Japan and Ukraine.

Document: DIU's FY-23 annual report

The Navy's top civilian this week acknowledged that the Navy and Marine Corps are jointly developing a memorandum of understanding pertaining to amphib readiness:

Navy, Marine Corps narrowing in on amphib readiness requirements

The Navy and Marine Corps are advancing a joint effort to clarify requirements and metrics for amphibious warship readiness, according to Navy Secretary Carlos Del Toro, who today said the services believe they need at least nine of the ships ready for action around the clock.

The Command, Control, Communications and Battle Management (C3BM) Aerial Networking line for the Air Force would grow to $147.1 million in the fiscal year 2025 budget request from $76.8 million asked for FY-24:

Air Force amps up ABMS work with Phalanx Griffon program in FY-25

The Air Force wants to nearly double its budget for the airborne networking segment of the Advanced Battle Management System as it ramps up a newer effort called Phalanx Griffon, according to budget documents released with the fiscal year 2025 budget request.

The CEO of HII discussed his company's quarterly earnings this week:

HII CEO: Manufacturing and shipbuilding labor major factor in delays

There is no "one-size-fits-all" solution to shipbuilding delays, but labor is the most contributing factor, shipbuilder HII Chief Executive Officer Chris Kastner told investors in a first-quarter earnings call Thursday.

The National Counterintelligence and Security Center found that semiconductors are one of the technology sectors where the opportunity for disruption of U.S. economic and national security is highest:

DOD, GSA and NASA working to implement semiconductor product ban

The Defense Department, General Services Administration and NASA are considering the implementation of a rule that would ban executive agencies from obtaining certain semiconductor products.