South Korean shipbuilder Hyundai Heavy Industries (HHI) has reportedly offered to manufacture advanced Aegis destroyers for the United States Navy. The proposal comes as Washington looks to address ‘gaping holes’ in its domestic shipbuilding capacity.
The offer was made at the Sea Air Space conference in April, where HHI signed a memorandum of understanding with US-based Fairbanks Morse Defense. Hyundai claims it can produce up to five destroyers a year that match the capabilities of the US Navy’s Arleigh Burke-class ships.
“We have over 250 engineers who can design and build Aegis ships with the same performance as the US,” a Hyundai official told the South Korean newspaper Chosun Ilbo. Woo-man Jeong, head of the firm’s Specialized Ship Business Division, said Hyundai could manufacture five such ships annually.
Hyundai is the only firm in South Korea licensed to integrate the Aegis combat system. The company has reportedly delivered four to five destroyers equipped with the system to the Republic of Korea Navy.
This is not Hyundai’s first foray into the US defense sector. The company has signed agreements with Fairbanks Morse and Huntington Ingalls Industries—the largest American military shipbuilder—and has recently announced a partnership with Anduril Industries to collaborate on autonomous military technologies.
The proposal reflects the growing reliance of the US Navy on allied shipyards amid persistent delays and challenges in domestic shipbuilding. These include skilled labor shortages, capacity constraints at existing yards, and aging infrastructure.
US Naval Expansion And The Industrial Gap
To meet its stated goal of expanding the fleet to 381 ships by 2054, the US Navy would need to acquire 364 new vessels—roughly 12 ships per year. However, the current industrial base is well below this capacity.
American shipyards are already falling short. Shortages of skilled labor, limited dock space, and outdated infrastructure have slowed production timelines.
As delays mount, the Navy is increasingly turning to allies to supplement production. Japan and South Korea, two countries with deep industrial capabilities and strong security partnerships with the US, are expected to play a key role.
“As the U.S. government has said it will prioritize negotiations with allies such as South Korea, we will make the utmost effort in the negotiations to minimize tariff burdens and promote mutual benefits,” said South Korea’s Acting President Han Duck-soo.
Japan’s Mitsubishi Heavy Industries and Japan Marine United have intensified their naval shipbuilding efforts and are enhancing interoperability with US naval platforms.
India has been part of broader strategic arrangements, such as the US-India Defense Technology and Trade Initiative. Indian shipyards, such as those operated by Mazagon Dock Shipbuilders Limited (MDL), Goa Shipyard Limited (GSL), and Hindustan Shipyard Limited (HSL), are being positioned as potential repair hubs for the US naval fleet.
A notable example is the repair of the US Navy’s Ship, USNS Charles Drew, at L&T’s Kattupalli Shipyard in Chennai. This marked the first-ever repair of a US Navy ship in India and showcased the capabilities of Indian shipyards in the global ship repair market.
The strategic aim behind such partnerships is to alleviate pressure on US shipyards while enhancing the Navy’s operational readiness. By incorporating allied industrial capabilities, the United States seeks to maintain its maritime dominance and keep pace with emerging naval threats.
China’s Growing Maritime Footprint
The shift toward allied shipbuilding comes amid growing concern in Washington over China’s naval expansion. According to the Pentagon, the People’s Liberation Army Navy (PLAN) is projected to field 395 ships by 2025 and 435 by 2030. By total number of hulls, the PLAN is already the world’s largest navy.
China’s newest warships, such as the Type 055 destroyers, are equipped with phased-array radar, long-range missiles, and advanced anti-submarine warfare capabilities. Designed to accompany aircraft carrier groups and provide fleet-wide air defense, these vessels represent a major leap in China’s surface warfare capacity.
The PLAN also operates a large submarine fleet, estimated to be around 70 boats, including the nuclear-powered Type 093 and Type 094 classes. The latter can carry submarine-launched ballistic missiles and plays a central role in China’s nuclear deterrence strategy.
China’s third aircraft carrier, Fujian, launched in 2022, features electromagnetic catapults and a flat-top deck. Future developments include the Type 004, which is expected to be nuclear-powered and designed for longer deployments. It is expected to be the “world’s biggest” aircraft carrier that could compete with the USS Gerald R. Ford, the U.S.’s biggest warship.
In addition to new platforms, China is expanding its naval footprint through overseas bases and access agreements. The PLAN has operated a base in Djibouti since 2017 and is reportedly developing naval access in Cambodia. Beijing is also seeking port agreements across the Indian Ocean and the South Pacific to support long-range operations.
These capabilities have enabled China to conduct blue-water exercises beyond the first island chain, test the integration of carrier strike groups, and project power into the Western Pacific and Indian Ocean.
China’s naval expansion is part of a broader maritime strategy aimed at asserting dominance in the South China Sea, strengthening its presence in the Western Pacific, and countering US influence. The militarization of artificial islands, increased patrols around Taiwan, and the deployment of maritime militia and coast guard vessels are key elements of this strategy.
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Rethinking Shipbuilding Strategy
The US Navy’s growing dependence on foreign shipyards is not merely a stopgap measure—it reflects a longer-term reorientation of strategy. By leveraging the industrial capacity of partners such as South Korea, Japan, and India, the US is seeking to strengthen supply chains, shorten production timelines, and ensure readiness in the face of great power competition.
While the shift may raise concerns about outsourcing critical defense production, Navy officials argue that the scale of the current challenge necessitates a broader manufacturing base. Given the urgency of fleet modernization and the scale of China’s maritime build-up, partnerships with capable allies are increasingly seen as a strategic necessity.
- Via: ET News Desk
- Mail us at: editor (at) eurasiantimes.com
