Trump wants Hanwha to build US frigates at Philadelphia shipyard

U.S. President Donald Trump attends a press conference, as he makes an announcement about the Navy's "Golden Fleet" at Mar-a-lago in Palm Beach, Fla., U.S., Monday. Reuters-Yonhap

When U.S. President Donald Trump unveiled plans to build new frigates for the U.S. Navy and specifically mentioned Korea’s Hanwha, the moment stood out as more than a passing mention to a foreign defense contractor.

By explicitly naming the Korean shipbuilder Hanwha Ocean, Trump seemed to signal a preferred partner in his broader push to revitalize the American shipbuilding industry — a move that has reshaped perceptions of the competitive race between Korean shipbuilders under the so-called MASGA initiative, short for “Make American Shipbuilding Great Again.”

The remarks have been widely interpreted as tipping the scales in favor of Hanwha over HD Hyundai, two Korean shipbuilding heavyweights often described by industry insiders as twin pillars of Korea’s naval construction sector.

While both companies have been considered potential partners for the U.S. Navy, Trump’s emphasis on Hanwha suggests that the contest is being judged not only on technical sophistication, but also on which company best aligns with the administration’s political and industrial priorities.

Trump’s decision to highlight Hanwha alongside its Philadelphia shipyard and large-scale investment plans was particularly telling. Rather than framing the project as an overseas procurement, Trump emphasized domestic production and job creation — a message that fits squarely within his “America First” economic narrative.

“When asked why Trump chose Hanwha, the answer is simple: it already owns the Philadelphia shipyard,” an industry source said. “Before considering technology or design capabilities, the key question was whether ships could be built in the United States right away.”

From the outset of MASGA discussions, Hanwha and HD Hyundai were considered front-runners. HD Hyundai has long been recognized for its advanced naval engineering capabilities, including experience in building high-end combat vessels such as Aegis-equipped destroyers. Hanwha, by contrast, entered the warship sector later but moved early to secure a U.S. production base by acquiring the Philadelphia shipyard.

“This race isn’t about who builds the best ship on paper,” the industry source said. “It’s about who can operate immediately within the U.S. system. In that sense, Hanwha matched more closely [with] what the Trump administration was looking for.”

Structural weaknesses in the U.S. shipbuilding industry have further influenced Washington’s calculations. Although the U.S. remains a global leader in naval design and weapons technology, its ability to translate these capabilities into the timely production of ships has eroded over the decades, largely due to labor shortages and limited shipyard capacity.

A national-security-purpose vessel is under construction at Dock No. 4 of Hanwha Philly Shipyard in Philadelphia, Penn., July 16 (local time). Courtesy of Hanwha Ocean

Yang Uk, a military expert and research fellow at the Asan Institute for Policy Studies, said the core bottleneck facing U.S. shipbuilding is not technology but manpower and construction capacity.

“The technology already exists,” Yang said. “The problem is the lack of production capability to turn that technology into actual ships. That’s where the experience of Korean shipbuilders becomes essential.”

Yang also interpreted Trump’s remarks as part of a broader political strategy. “From Trump’s perspective, reviving the Philadelphia shipyard itself is a political achievement,” he said. “Seen that way, Hanwha was the only option capable of delivering visible results in the near term.”

According to Yang, the episode illustrates the true nature of the MASGA competition. “This choice wasn’t about favoring a specific company,” he said. “It was about selecting an answer to the question of how to restore American industry and jobs. The Trump administration’s priority was an immediately operational production base in the U.S., and under that condition, Hanwha had a clear advantage.”

Still, industry watchers caution against viewing the situation as a one-sided victory. Another industry source noted that Hanwha could face operational strain if it is required to build Korea’s next-generation KDDX destroyers at home while simultaneously producing frigates for the U.S. Navy.

“Handling both projects at the same time could place significant pressure on manpower and production management,” the source said. “Having a lot of work is not always an advantage.”

By contrast, HD Hyundai may retain flexibility. With relatively few active naval shipbuilding orders at present, the company could have greater manufacturing capacity available if future U.S. projects or procurement conditions shift.

“If the MASGA framework evolves over the long term, HD Hyundai could still reemerge as a strong contender,” the source said.

For now, Trump’s public endorsement has reframed the competition, highlighting that, in today’s strategic environment, industrial preparedness and political alignment are as important as technical excellence.