As the United States struggles to overcome persistent bottlenecks in its naval shipbuilding industry and keep pace with China’s accelerating naval expansion, Washington may be preparing to rethink one of the most protected areas of its defense industrial base by looking beyond domestic shipyards for solutions.
According to South Korean industry officials, the U.S. Navy has issued Requests for Information (RFIs) to major shipbuilders, including Hanwha Ocean and HD Hyundai Heavy Industries, seeking details on their production capabilities, shipyard infrastructure, workforce, technological expertise and experience in building complex naval combatants.
The questionnaires are intended to assess whether the companies could eventually contribute to future U.S. Navy shipbuilding programs, although they do not constitute contract solicitations.
The move comes as Washington confronts one of the most serious industrial challenges facing its military. Despite ambitious plans to expand the U.S. Navy, American shipyards have struggled for years with construction delays, cost overruns, labor shortages and aging infrastructure that have slowed production of submarines, destroyers and other frontline vessels.
The U.S. Navy’s attack submarines have experienced repeated production delays, while maintenance backlogs have left numerous vessels awaiting repairs for months or even years. Programs including the Columbia-class ballistic missile submarine and Virginia-class attack submarines and Arleigh Burke-class destroyers have all encountered industrial bottlenecks stemming from shortages of skilled welders, engineers and specialized suppliers.
The Congressional Research Service (CRS) and other defense assessments have repeatedly warned that the U.S. industrial base lacks sufficient capacity to simultaneously replace aging fleets, expand force structure and support commitments to allies. Workforce shortages remain particularly acute, with many American shipyards struggling to recruit and retain enough qualified personnel to meet growing demand.
These industrial constraints have become increasingly significant as U.S. defense planners seek to maintain naval superiority in the Indo-Pacific, where China’s shipbuilding industry has expanded at an unprecedented pace.
China now possesses the world’s largest commercial shipbuilding industry and has translated much of that industrial capacity into rapid naval modernization, enabling the People’s Liberation Army Navy (PLAN) to commission new warships at a pace that far exceeds U.S. production.
Against that backdrop, South Korea is definitely one of the most attractive industrial partners for Washington, as it is home to some of the world’s largest and most technologically advanced shipbuilders, with companies including HD Hyundai Heavy Industries, Hanwha Ocean and Samsung Heavy Industries.
Korean shipyards are widely recognized for modular construction techniques, digital manufacturing systems, shorter production cycles and sophisticated supply-chain management. These efficiencies have enabled the country to remain one of the world’s leading builders of high-value commercial vessels despite growing competition from China.
South Korean shipbuilders have also steadily expanded their defense portfolios. HD Hyundai Heavy Industries has built destroyers, frigates and submarines for the Republic of Korea Navy, while Hanwha Ocean has extensive experience producing submarines and surface combatants.
Both companies secured Master Ship Repair Agreements with the U.S. Navy in 2024, allowing them to perform maintenance, repair and overhaul work on American naval vessels operating in the Indo-Pacific. Since then, South Korean yards have completed multiple repair projects for U.S. ships, strengthening confidence in their technical capabilities.
The latest U.S. information requests represent a potentially significant evolution beyond maintenance work toward possible participation in naval construction, although some legal and political hurdles remain.
Current U.S. law, particularly the Byrnes-Tollefson Amendment, prohibits foreign participation in building American naval vessels. That said, recent legislative proposals introduced in Congress seek to create limited exemptions allowing trusted allies such as South Korea to construct certain classes of auxiliary or support ships while preserving domestic production of highly sensitive combat platforms. Those proposals remain under debate.
The discussions also fit into broader efforts by Seoul and Washington to deepen industrial cooperation. South Korea has promoted its “Make American Shipbuilding Great Again” (MASGA) initiative, under which the country has pledged US$ 150 million in investments in U.S. shipbuilding, supply chains and maritime infrastructure.
The benefits of such a partnership cut both ways, as even South Korean firms, though have a lead in technologically complex vessels such as LNG carriers and advanced naval platforms, they face mounting competitive pressure in commercial markets from Chinese shipbuilders who benefit from extensive state support and enormous production capacity.
Hence, even South Korean companies have been expanding international cooperation through investments, overseas production, and partnerships with foreign shipyards, including defense contracts, to maintain competitiveness amid shifting global market dynamics.
For Hanwha Ocean, as an example, cooperation with the United States has become a central growth strategy following its acquisition of Philadelphia Shipyard, which provides the company with a foothold inside the U.S. maritime industry. Hanwha has also secured contracts from the U.S. Navy for the Next-Generation Logistics Ship design and building MARAD multi-mission vessels, while expanding its American workforce and production capabilities.
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HD Hyundai, meanwhile, has strengthened partnerships with U.S. defense companies and research institutions focused on advanced naval technologies and autonomous vessels.
Overall, a carefully structured partnership with trusted allies like South Korea could help the U.S. accelerate its naval fleet expansion while easing near-term production bottlenecks, giving Washington time to modernize domestic shipyards, expand its supplier base and develop the skilled workforce needed to rebuild its long-term shipbuilding capacity.
Tanmay Kadam is a geopolitical observer based in India. He has experience working as a Defence and International Affairs journalist for EurAsian Times. He can be contacted at tanmaykadam700@gmail.com.