Defense semiconductor and technology spending is in a surge-driven upcycle -- book-to-bill ratios of 1.16-1.48, $1B+ annual directed energy budgets, and 3-5 year order commitments replacing annual procurement signal a structural shift

Defense technology spending has inflected from steady-state procurement to urgency-driven surge across the entire supply chain. Mercury Systems' book-to-bill hit 1.48. Teledyne's book-to-bill sustained above 1 for 10 consecutive quarters at 1.16. Vishay Americas reached 1.4. KN is seeing 3-5 year order commitments instead of annual buys. The $1.5 trillion proposed defense budget represents a 44% increase. Directed energy laser weapons budgets are reaching $1B annually by FY2027-2028 (LASR). ATI has a $4.1B record backlog with a $1B naval nuclear contract and doubling missiles revenue. IPG Photonics secured a $10M Lockheed Crossbow follow-on. RAL's defense backlog exceeds $1B. Crane sees 2-5x growth in missile defense platforms by 2030. Moog has $60M Q1 defense orders with $300M+ open RFQs. PSN's $500M sole-source Joint Cyber Hunt Kit contract and SAIC's loitering munitions production lines signal acceleration in autonomous systems. The defense semiconductor overlay is particularly significant because it competes for the same specialty materials, alloys, and manufacturing capacity as the AI buildout (ATI's exotic alloys, LASR's high-energy lasers). The simultaneous demands from AI infrastructure, defense rearmament, and commercial nuclear are creating a three-way competition for specialty materials and manufacturing capacity that will persist through 2030.