TAIPEI (Taiwan News) — CSBC Corporation is turning toward defense growth as it prepares to deliver the country’s first domestically built submarine and expand unmanned maritime capabilities, Nikkei Asia reported Wednesday.
Taiwan’s top shipbuilder is betting on a defense-driven future as it races to deliver the country’s first domestically built submarine amid rising pressure from China.
CSBC Chair Chen Jeng-horng (陳政宏) said the Narwhal submarine is in the final stage of sea trials and is expected to be delivered in the second half of this year. He said earlier that technical issues were manageable and did not create major bottlenecks for the decade-long project.
The government-backed shipbuilder is at the center of Taiwan’s efforts to strengthen maritime defenses as China increases military, coast guard, and law enforcement activities around the country. Beijing has also recently drawn attention with a submarine-launched missile test in the Pacific, per Reuters.
CSBC, which builds commercial and military vessels, reported revenue of NT$21.78 billion (US$679.3 million) last year and holds an order backlog worth about NT$130 billion. Chen said the company faced losses in Q1 partly due to exchange rate fluctuations and challenges from new shipbuilding projects, but expects operations to improve as defense programs increase.
The delivery of the Narwhal is considered a key milestone for President Lai Ching-te’s (賴清德) plan to build a fleet of eight indigenous submarines, per Nikkei Asia. However, the opposition-controlled legislature has frozen half of the submarine budget until the first vessel is completed, creating uncertainty over future production schedules.
Chen said Taiwan should continue designing additional submarines at the same time because future vessels will largely follow the Narwhal’s design with only limited changes. He added that completing the project would strengthen CSBC’s financial position by unlocking future funding.
Chen also stressed maritime security for Taiwan, saying the country’s dependence on imported energy and vulnerable undersea communication cables make naval and drone capabilities essential. He urged lawmakers to approve funding for unmanned surface and underwater vehicles, which he said are critical to countering China’s maritime pressure.
Taiwan’s drone programs have faced political obstacles after opposition lawmakers cut funding for domestic unmanned systems from the government’s defense budget. Chen warned that without sufficient drone capabilities, Taiwan’s Navy and Coast Guard could struggle to respond whenever Chinese vessels conduct operations near the country.
CSBC is also expanding its role in unmanned maritime systems, including the Endeavor Manta, one of Taiwan’s first military uncrewed surface vessels. Chen said the trimaran-design drone is suited for the Taiwan Strait’s rough waters and can be used for missions ranging from rescue operations to combat roles.
Looking ahead, Chen said CSBC expects defense projects to become a major growth driver, with plans including larger naval vessels and submarine rescue ships. The company is also preparing to expand production of the Endeavor Manta, which can be configured for different military and Coast Guard requirements.
