U.S. Navy Invests $6.6 Billion in Virginia-Class Attack Submarines to Support Allied Undersea Warfare Capabilities by 2026

On October 6, U.S. defense company Anduril announced it would invest $3.7 billion to build a new facility in Maryland to manufacture critical components for Virginia-class nuclear attack submarines. The U.S. Navy will also enter into contracts worth up to $2.9 billion, bringing the total investment to $6.6 billion when combined with public and private funding. While this announcement may not be as prominent as new ship equipment, it is this type of production capability that will determine the sustainability of undersea warfare capabilities.

Reasons for Not Increasing Submarine Numbers

The new facility, called Arsenal-2, aims to be operational in the 2030s. It is expected to create approximately 3,100 direct jobs and over 11,000 indirect jobs, with plans to expand from existing facilities in California that manufacture torpedo tubes to larger modules and hull sections in the future. The Virginia-class submarines can operate at speeds exceeding 25 knots and are capable of anti-submarine warfare, intelligence gathering, and land attack missions all in one vessel. However, if the burden is concentrated solely on Electric Boat and HII, the supply of parts will become a bottleneck before the performance of the vessels is even considered.

Implications for Japan

Japan operates conventional submarines such as the "Taigei" class, but they cannot substitute for the roles of U.S. nuclear submarines. Therefore, in the undersea domain of the U.S.-Japan alliance, a realistic framework combines the U.S. Navy's long-range, extended-duration intelligence gathering with Japan's quiet surveillance around its islands. If the U.S. increases production of Virginia-class components, it will become easier to establish sustained anti-submarine patrols east of the First Island Chain, thereby enhancing the value of the information obtained by Japan's escort ships, P-1 patrol aircraft, and submarines.

However, the $6.6 billion does not mean an immediate increase in the number of vessels. The new facility will not be operational until the end of the decade, and there are still challenges related to skilled labor, raw materials, quality assurance, and process coordination with existing shipyards. Anduril specializes in autonomous systems and software, but components for nuclear submarines cannot be mass-produced in a short time like digital products. The success of this contract should be judged not by the amount invested but by the track record of reliably delivering standardized components.

Production Capacity to Protect Maritime Trade Routes

As the Chinese Navy's submarine capabilities increase and the SLOC (Sea Lines of Communication) from the Taiwan Strait to the southwestern islands come under pressure, what is needed for deterrence is not a one-time deployment but the ability to maintain patrols over several months. In this sense, the current reform is not just about how many Virginia-class submarines to add. It is an attempt to question whether the U.S. can maintain undersea superiority in alignment with the operational timelines of its allies. In my view, the true risk lies not in the number of Chinese vessels themselves but in how quickly the U.S. and Japan can replenish depleted sensors, torpedo tubes, and supply parts.

Referenced Information

• Defense News, October 6, 2026
• U.S. Navy Virginia-class SSN Fact File
• Japan Maritime Self-Defense Force Taigei-class Submarine