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    Home > Finance > Taiwan completes first undersea trial for domestically made submarine
    Finance
    Taiwan completes first undersea trial for domestically made submarine

    Published by Global Banking and Finance Review

    Posted on January 30, 2026

    3 min read

    Last updated: January 30, 2026

    Taiwan completes first undersea trial for domestically made submarine - Finance news and analysis from Global Banking & Finance Review
    Tags:innovationtechnologyfinancial management

    Quick Summary

    Taiwan's first indigenous submarine sea trial marks a key defense milestone against China, with plans for more submarines by 2027.

    Table of Contents

    • Taiwan's Indigenous Submarine Program
    • Significance of the Sea Trial
    • Challenges and Future Plans
    • International Collaboration
    • Financial Aspects of the Program

    Taiwan Achieves Milestone with First Indigenous Submarine Sea Trial

    Taiwan's Indigenous Submarine Program

    TAIPEI, Jan 30 (Reuters) - Taiwan completed the maiden underwater sea trial for its first domestically developed submarine on Thursday, a big milestone in a project aimed at strengthening deterrence against the Chinese navy and protecting vital sea lanes in the event of war.

    Significance of the Sea Trial

    Taiwan, which China claims as its own territory, has made the indigenous submarine programme a key part of an ambitious project to modernise its armed forces as Beijing stages almost daily military exercises to assert its sovereignty claims.

    Challenges and Future Plans

    The submarine programme has drawn on expertise and technology from several countries, including the United States and Britain, a breakthrough for diplomatically isolated Taiwan, whose government rejects Beijing's territorial claims.

    International Collaboration

    Taiwan's CSBC Corp, which is leading construction of what is eventually planned to be eight submarines, said in a statement late on Thursday that the first ship, named the Narwhal, had completed its first underwater test at sea.

    Financial Aspects of the Program

    It said the submarine had carried out a "shallow-water submerged navigation test".

    "Submarines are a key strategic capability with deterrent power," it said, after the test off the southern Taiwanese port of Kaohsiung.

    The Narwhal had been due to be delivered to the navy in 2024, joining two existing submarines purchased from the Netherlands in the 1980s, but the programme has been hit with delays.

    "Due to constraints in the international environment and pressure from the Chinese communists, Taiwan's indigenous submarine programme has faced various difficulties and challenges from the beginning to the present," CSBC said.

    Taiwan has said it hopes to deploy at least two such domestically developed submarines by 2027, and possibly equip later models with missiles.

    The first submarine, with a price tag of T$49.36 billion ($1.58 billion), will use a combat system by Lockheed Martin Corp and carry U.S.-made Mark 48 heavyweight torpedoes.

    Taiwan's armed forces are dwarfed by those of China, which has three operational aircraft carriers and ballistic missile submarines and is developing stealth fighter jets.

    Taiwan is modernising its military to be able to fight "asymmetric warfare," using mobile and agile systems like submarines, drones and truck-mounted missiles to fend off its much larger adversary China.

    Taiwan President Lai Ching-te announced in November 2025 that his government would spend an additional $40 billion on defence.

    ($1 = 31.2190 Taiwan dollars)

    (Reporting by Ben Blanchard; Editing by Christian Schmollinger)

    Key Takeaways

    • •Taiwan completed its first domestically developed submarine sea trial.
    • •The submarine program aims to deter the Chinese navy.
    • •International collaboration includes the US and UK.
    • •The first submarine, Narwhal, faced delays but is key to Taiwan's defense.
    • •Taiwan plans to deploy more submarines by 2027.

    Frequently Asked Questions about Taiwan completes first undersea trial for domestically made submarine

    1What is an indigenous submarine?

    An indigenous submarine is a submarine that is designed and built using local resources and technology, rather than being imported from other countries.

    2What is deterrence in military terms?

    Deterrence is a strategy aimed at preventing an adversary from taking an action by instilling doubt or fear of the consequences.

    3What are military exercises?

    Military exercises are training activities conducted by armed forces to prepare for combat scenarios and improve operational readiness.

    4What is a combat system in submarines?

    A combat system in submarines refers to the integrated suite of equipment and software used for navigation, targeting, and engaging in combat.

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