The so-called ‘Anschluss’ (annexation) took place in 1938 and Austria became part of the German Reich. Many people attached great hopes to the National Socialist regime and did not realize that terror and war would be the result. Kapsch was active in an industry which was important to the war effort and became, like other radio and radio equipment manufacturers, an important supplier to the armed forces and state authorities. The great need for radio equipment, radios as well as batteries and capacitors was reflected in the number of its employees: more than 3,000 people worked at Kapsch in 1943.