F-35A procurement: Further offset projects are strengthening Swiss industry – target values are being clearly surpassed

Offset business, also known as offset transactions, include orders, projects or cooperations which a foreign supplier implements as part of a procurement with companies, higher education institutions or research partners in Switzerland. Transactions in the amount of 1.03 billion US Dollars that have been credited to Lockheed Martin in connection with the procurement of the new combat aircraft F-35A as of 30 June 2026 are already listed in the offset register. This corresponds to around one-third of the entire offset obligation. A package of further projects is now being added, which makes implementation of the offset obligation more predictable, more effective and more strongly focused on security-relevant skills in Switzerland.

Projects with direct benefits for operational readiness and sovereignty

The new projects include, for example, an F135 engine training system with know-how transfer based on the “train the trainer” principle, the development of capabilities for the production and repair of F-35 canopy components, cyber training to protect F-35-related IT networks, and the development and qualification of training ammunition for the F-35. Such projects not only generate industrial contracts; they also help Switzerland build and sustain critical capabilities, technical knowledge, and mission-relevant expertise within the country over the long term.

Other initiatives include the advanced manufacturing and certification of safety-critical components, the expansion of expertise in micro- and nanotechnologies, a Quantum System 2 ecosystem available in Switzerland, and projects in the field of sustainable synthetic aviation fuels. This will strengthen future-oriented fields that are of growing importance for defense, security of supply, cyber resilience, secure communications, sensor technology, and robust supply chains.

Strengthening Swiss industry and key technologies

With the addendum, armasuisse can focus the participation of Swiss industry more specifically on security-relevant key technologies, industrial capabilities and a broader regional presence. Amongst other things, the agreed projects concern industrial services, supply chain contributions, research and development as well as technological skill development. The focus is on the concrete benefits for the Security-relevant Technology and Industry Base of Switzerland.

These capabilities are crucial, particularly in a challenging security-political environment: Anyone who can maintain, verify, certify, digitally secure or technologically develop critical components increases their own freedom of action. Offset is thus not understood to be a formal compensation, but an instrument to strengthen industrial substance, expertise and innovative capacity in areas that are relevant for the security of Switzerland.

Regional target values significantly exceeded

With the projects now agreed, a further step has been taken towards a wider regional presence. If successfully implemented, the regional target values would be significantly exceeded: In French-speaking Switzerland, the share is expected to rise to around 43% instead of the foreseen 30% – an overfulfilment of around 40%. In Italian-speaking Switzerland, the share will increase to around 12% instead of 5%, corresponding to an overfulfilment of around 140%. The Romance-language regions of the country in particular will thus be more closely involved.

The content-related target values are also expected to be overfulfilled: The direct offset share will achieve around 28% as things stand today, the indirect share around 45%. Together, this will result in an expected offset volume of around 73% of the contract value – considerably more than the 60% required by contract.

The total offset obligation of Lockheed Martin is around 3 billion US Dollars. This corresponds to 60% of the value of the contract. According to federal decree, 20% will be directly associated with the F-35A procurement. A further 40% can be carried out indirectly, in other words, in security- and arms-relevant areas of Swiss industry. In addition, it is planned that 65% of the offset transactions will be incurred in German-speaking Switzerland, 30% in French-speaking Switzerland and 5% in Italian-speaking Switzerland.

armasuisse closely monitors implementation

Lockheed Martin remains responsible for fulfilling the offset obligation. The projects set forth in the addendum will only be credited once they have been implemented, proved and inspected by armasuisse. Depending on the project, these include contracts, purchase orders, invoices, payment documents, proofs of performance or other project-specific documents.

If a project cannot be implemented or only implemented in part, the offset obligation will remain in place. In this case, Lockheed Martin must submit an equivalent substitute transaction in consultation with armasuisse. Commercial details of individual projects cannot be disclosed for reasons of commercial and manufacturing secrets. armasuisse will provide information regarding further implementation in due course.

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• Offset register