Taiwan Launches $14.6Bn Shipbuilding Plan

Navy to Earmark NT$470 Billion for Shipbuilding Projects

(Source: China News Agency; published June 20, 2016)

By Claudia Liu and Flor Wang

TAIPEI --- The Navy is slated to allocate NT$470 billion (US$14.59 billion) for 12 shipbuilding projects during the 2018-2040 period, Navy Command Headquarters Chief of Staff Vice Adm. Mei Chia-shu said Monday.

The Navy will first focus on building a new model of amphibious transport dock, high-speed mine-laying ships and the Tuo Jiang- class corvette next year, said Mei, who gave the figure, described as a rough estimate, during a hearing at the legislative Foreign and National Defense Committee.

According to Mei, contract designs for the new amphibious transport dock will be finalized this year, to be followed by those for the high-speed mine-laying vessels and the Tuo Jiang-class ships -- Taiwan's first domestically developed stealth missile corvette. Spending on these related projects is estimated at NT$60 billion from now through 2025, he said.

Mei was answering questions from Kuomintang lawmaker Johnny Chiang, who expressed concern about which vessels will be given priority on the agenda of the Navy's mega-program to build locally developed warships.

Chiang's questions came as the Navy was set to make public 12 major warship-building projects at an investment conference in Taipei later Monday, as part of its efforts to demonstrate Taiwan's resolve to build its own ships at home and to lure greater investment ahead of the first-ever International Maritime and Defense Expo scheduled to open in Kaohsiung Sept.14-17.

Local media have reported that the Navy is hoping to build 6-8 Aegis-equipped destroyers to replace its aging Kidd-class fleet, which they have been calling the most eye-catching plan among the 12 projects.

The United States agreed to sell Taiwan eight diesel-electric submarines in 2001, but the deal has not been completed, as the U.S. has not built diesel-electric submarines since 1959.

Since 2001, developing locally built warships has been a hotly debated issue in Taiwan, in the face of increasing military enhancement efforts by other countries in the region.

It is difficult for Taiwan to acquire submarines from other countries due to its delicate relations with China, which sees Taiwan as one of its provinces.

President Tsai Ing-wen, who took office May 20, reaffirmed her goal June 4 of pushing for a self-reliant national defense force, when she boarded a domestically built warship off Yilan County in eastern Taiwan.

"In addition to enhancing naval combat capacity, it will also help the development of the shipbuilding and machinery sectors, as well as system integration," she emphasized. "The government will continue to promote the policy of building its own vessels."

Han Pi-hsiang, chairman of the Taiwan Shipbuilding Industry Association, said Sunday that he welcomes the government policy, and estimated that it will help push the sector's production value to NT$70 billion per year.

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Taiwan Moves on $14.7B Indigenous Shipbuilding, Upgrade Projects (excerpt)

(Source: Defense News; published June 23, 2016)

By Wendell Minnick

TAIPEI --- The Taiwanese Navy announced 12 new shipbuilding and force modernization programs covering a 23-year period at roughly $14.7 billion on Monday. This indigenous build effort is part of an overall plan to wean Taiwan off expensive and politically troublesome US defense acquisitions — which often consist of refurbished older platforms — and develop a robust defense industry on the island.

The projected timeline runs from 2017 to 2040, and programs include a Taiwan Aegis destroyer and frigate, submarine, high-speed minelayer, landing platform dock (LPD), 11 additional stealthy Tuo Jiang-class missile corvette catamarans, and multi-purpose transport. Other programs include more AAV7s, a type of assault amphibious vehicle, for the Taiwanese Marine Corps, underwater swimmer delivery vehicles for special forces, and assorted weapons for special forces.

Despite the impressive list that includes a wide variety of vessels and systems, orchestrated by the Navy’s Naval Shipbuilding Development Center, the list is considered by some Taiwan defense analysts to be a “Christmas wish list.” As of now, only three of the programs have been officially authorized and funded for construction.

“The Navy has a vision, but no common sense,” said Ching Chang, a research fellow of the Taipei-based Society for Strategic Studies and former Taiwanese naval officer. “It is like a child in a candy store that wants everything.” Taiwan cannot afford to buy all this candy, he said — maybe two or three of the big items, nothing more.

“On Aegis, due to complexity, there are unanswered question on the percentage of imported technology versus domestic sources," Chang said. “The Navy’s vision is at this time just that, a vision. Nothing more."

However, another Taiwanese defense analyst, who spoke on condition of anonymity, said that if the vision is substantially implemented it could offer enormous opportunities for international firms to supply sensors, weapon systems, critical components, advanced manufacturing technology and tooling, as well as technical assistance in design, engineering and program management services.

Opportunities will be highlighted during the upcoming inaugural Kaohsiung International Maritime and Defence Expo from Aug. 25-28 in the southern port city of Kaohsiung.

According to a defense industry briefing provided by the Taiwan Shipbuilding Industry Association, at present, the three funded programs are the LPDs, additional Tuo Jiang-class corvettes and minelayers. The three programs are estimated at $1.875 billion and cover a timeline of 2017 through 2025. (end of excerpt)

Click here for the full story, on the Defense News website.

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