Pentagon $1.85B Study of Japanese, Korean Warship Build
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- Pentagon proposed a $1.85 billion request in its FY‑2027 budget to fund studies and possible procurement of future cruiser/destroyer and frigate warships from Japanese and South Korean shipyards.
- U.S. Navy has been directed to examine Japanese and Korean shipyards and designs for inclusion in the fleet’s future surface combatant inventory.
- Hanwha Ocean and other South Korean firms such as HD Hyundai Heavy Industries and Samsung Heavy Industries are identified as potential beneficiaries of the foreign‑shipbuilding initiative.
- John Phelan (then‑Secretary of the Navy) said producibility considerations point toward South Korea and Japan for foreign‑built combat ships.
- Mitsubishi Heavy Industries (with Japan Marine United) have laid keels for two Aegis System Equipped Vessel ships slated for delivery in 2028 and 2029, outpacing U.S. Arleigh Burke‑class destroyer schedules.
- Russ Vought (OMB Director) warned that if traditional U.S. sources cannot deliver ships on time and cost, the Navy will obtain them from other shipyards.
- U.S. law generally prohibits foreign construction of warships without a national‑security waiver, meaning Congress would need to approve any broader procurement effort.
Why it matters: U.S. shipbuilders risk losing contracts as the Navy seeks cheaper, faster foreign production, while Japanese and South Korean firms could secure billions in new orders and deepen strategic ties with Washington amid China competition. The move also forces Congress to confront legal barriers that normally bar foreign warship construction, prompting a national‑security waiver and reshaping the U.S. maritime industrial base.
