Switzerland to increase F-35 Offsets from 60% to 73%

The Swiss Ministry of Defense (moD) and Lockheed Martin are substantiating further projects for F-35A procurement under which the offset business will increase to around 73% of the contract value  instead of the required 60%.

The regional target values will also be far exceeded: In French-speaking Switzerland, the expected share is around 40% above the specification; in Italian-speaking Switzerland, the target value is expected to be as much as around 140% over-fulfilled.

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, a MoD release said.

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:

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.

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.

Strengthening Swiss industry and key technologies

With the additional projects, the Swiss MoD can focus the participation of Swiss industry more specifically on security-relevant key technologies, industrial capabilities and a broader regional presence.

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.