Hanwha Group has shown interest in building nuclear-powered submarines for the U.S naval forces, stating that its Philadelphia facility is apt for constructing the Virginia-class subs, if the government approves the plan.

The announcement from the South Korean defence company comes when the U.S Navy is already facing submarine production bottlenecks at the existing shipyards, struggling to deliver ships on schedule.

The Seoul-based company had acquired the Philadelphia shipyard a year ago and, since then, has worked to modernise it and strengthen the workforce.

The company is now stating that the facility could be the solution to production delays by offering additional shipbuilding capacity, especially as demand increases way beyond what current yards can deliver.

The proposal is significant as nuclear submarines are not easy to build and require adherence to strict regulations and regulatory approvals, specialised infrastructure for testing and a skilled workforce.

Only a small number of American shipyards can build them, highlighting that Hanwha’s proposal could lead to expansion of the U.S Naval industrial base.

Various features of the Virginia-class subs enhance their warfighting capabilities, including littoral and coastal operations.

It can support SOF, and its torpedo room can accommodate many SOF personnel and all their equipment for long deployments, along with future off-board payloads.

The development reflects deepening defence cooperation between the U.S. and South Korea. It also aligns with U.S efforts to strengthen shipbuilding capacity through allied support while providing all potential profits for Philadelphia.

Though hurdles remain, Hanwha’s proposal shows how international cooperation can support U.S naval readiness in the coming years.

The announcement came after President Trump said in a press conference that Hanwha would build frigates for the U.S. Navy. He called it ‘a good company’ while referring to its planned US$5 billion expansion in the Philly Shipyard, which it bought in 2024 for US$100 million.

There are just 24 Virginia-class submarines commissioned till now, and the United States needs to build at least 2 nuclear-powered subs every year to meet its targets. However, it has built an average of just 1.2 annually.