In a move that could reshape Southeast Asia’s naval balance, European defence giants Fincantieri and Thyssenkrupp Marine Systems (TKMS) have joined forces to propose a next-generation submarine solution to the Philippine Navy. Their bid, centered on the U212 NFS (Near Future Submarine), positions the Philippines at the heart of a high-stakes, multi-billion-dollar contest involving Europe and Asia’s most powerful shipbuilders.
The partnership between Italy’s Fincantieri and Germany’s TKMS is more than a sales pitch. It’s a strategic alignment aimed at securing long-term influence in the region’s defence sector. Their proposed offering, a variant of the U212 NFS, combines stealth, endurance, and firepower with promises of industrial cooperation, training, and infrastructure development. It’s a direct response to the Philippine Navy’s push to modernize its maritime defence and develop an indigenous undersea warfare capability.
“Building on our successful cooperation within the Italian submarine program, this industrial cooperation agreement provides an excellent foundation for further joint projects in the underwater domain,” said Oliver Burkhard, CEO of TKMS.
The U212 NFS is an evolution of the Type 212A, a conventional submarine that set benchmarks for stealth and survivability. While Germany and Norway have advanced the 212CD (Common Design), Italy went its own way, crafting the U212 NFS to meet distinct strategic needs.
Key to its appeal is the Air-Independent Propulsion (AIP) system powered by hydrogen fuel cells. This tech allows the submarine to remain submerged for weeks, avoiding detection and enhancing survivability in contested waters. Future upgrades include lithium-ion batteries, increasing underwater endurance and reducing acoustic signatures.
The submarine is outfitted with Leonardo-designed systems—from sonar to periscopes to combat management—ensuring seamless integration with NATO forces. It also features the Black Shark Advanced torpedo, designed to engage both surface ships and enemy subs with high accuracy.
Critically, the deal isn’t just about subs. Fincantieri and TKMS plan to develop local shipbuilding capabilities, creating new jobs and technical expertise within the Philippines. It’s a long-term investment designed to build strategic ties and deepen Manila’s defence autonomy.
But the Europeans aren’t alone. The Philippine submarine programme has attracted interest from a crowded field of competitors, each offering advanced platforms and sweetened deals. The contest is not just about military hardware; it’s about access, influence, and shaping the future of maritime security in a region increasingly marked by geopolitical tension.
Spain’s Navantia has submitted a bid centered on its S-80 Isaac Peral-class submarine. Four of these are in active service with the Spanish Navy. The submarine is 81 meters long and capable of ISR, land-attack, anti-surface, and anti-submarine operations.
Navantia’s offer stands out for its scale. The company has proposed a complete naval infrastructure package—two submarines, a new base in Ormoc City, logistics and maintenance support, and comprehensive crew training. It also includes technology transfer to empower the Philippines to maintain and eventually build its own submarines.
“Navantia is offering a revolutionary submarine solution tailored to the Philippine Navy’s needs, with full interoperability, training, and operational support,” said Guillermo Zamarippa, Navantia’s Commercial Manager.
The S-80 class uses its own AIP system, providing up to three weeks of submerged endurance. It is tailored for blue-water operations, ideal for extended patrols in the South China Sea, and aligns well with the Philippines’ goals for a versatile, long-range naval asset.
Naval Group of France has entered the race with its Scorpène-class submarine. Operated by navies in Brazil, India, Malaysia, and Chile, the Scorpène is a battle-tested diesel-electric platform with AIP, known for its low acoustic signature and combat flexibility.
France has been in talks with Manila since at least 2020, even offering seabed research cooperation in exchange for the submarine deal. The French proposal reportedly includes full training cycles, NATO-standard designs, and options for future upgrades.
Naval Group opened a Manila office in 2022, signaling a long-term intent to embed itself in the Philippines’ defence sector. The bid includes potential industrial partnerships and local support centers.
While France lacks a recent direct defence export record to the Philippines, its existing presence in regional navies and experience in strategic cooperation give it an edge in long-term credibility.
South Korea’s Hanwha Ocean (formerly DSME) has proposed its latest Jang Bogo-III class submarine. This 77-meter-long platform is equipped with lithium-ion batteries, low acoustic signature propulsion, and six torpedo tubes capable of launching both torpedoes and cruise missiles.
The submarine can reach speeds of 21 knots and carries a crew of 41. But what truly strengthens South Korea’s pitch is the package: a complete support ecosystem including simulators, technology transfer, maintenance support, and financing options.
Hanwha Ocean has offered to establish support facilities at Subic Bay or another Philippine Navy site, providing flexibility in basing and logistics. The inclusion of a seven-year financing package with competitive interest rates adds further appeal.
This aligns well with Manila’s defence modernisation plans, which are often limited by budgetary constraints. South Korea’s proven track record of military cooperation and arms exports to Southeast Asia enhances its standing in the competition.
The Philippines’ decision will come down to more than just platforms and specs. Manila wants strategic depth: interoperability with allies, local industry development, sustainable training pipelines, and long-term support.
President Ferdinand Marcos Jr. has prioritized defence modernization in the face of increasing tensions in the West Philippine Sea. Chinese maritime assertiveness and grey-zone tactics have pushed Manila to diversify and strengthen its military partnerships.
The submarine program is part of the broader Armed Forces of the Philippines (AFP) Modernization Program, now in its third phase. Submarines represent the pinnacle of the navy’s ambitions—a force multiplier offering surveillance, deterrence, and strike capabilities.
But they also represent vulnerability: the wrong choice could result in interoperability issues, poor serviceability, or dependence on unreliable partners. Thus, the decision is as much about politics and trust as it is about performance.
Each bidder understands the stakes. Winning the Philippine contract would mean more than immediate revenue. It offers a strategic footprint in a region at the epicenter of great power competition.
Fincantieri and TKMS are positioning themselves as long-term partners, not just vendors. Their pitch of co-developed infrastructure and operational support is designed to appeal to both the defence establishment and the political leadership in Manila.
Spain’s Navantia is offering strategic real estate in Ormoc City, which would allow the Philippine Navy to base subs in the Visayas region—a major shift from the traditional focus on Luzon and Subic Bay.
France’s Naval Group brings NATO integration experience and proven platforms in Indo-Pacific waters. It also represents an independent European option, not bound by the U.S. or regional Asian alliances.
South Korea is leveraging its growing defence exports and alignment with Southeast Asia’s needs. The Jang Bogo-III is tailored to the regional theatre, and Seoul’s flexible financing and training packages make it a serious competitor.
China will be watching closely. The Philippines’ choice will signal how far Manila is willing to go in cementing alliances outside Beijing’s orbit. A deal with any of the European or South Korean players represents a commitment to a diversified and resilient defence strategy.
Washington will also have a stake. Although the U.S. is not directly participating in the bidding, interoperability with U.S. systems is a major factor. All proposed platforms, except perhaps the Scorpène, are designed with NATO or U.S.-aligned combat systems.
Japan, while not currently in the race, has also explored naval cooperation with Manila and may re-enter with future offers.
In this context, the submarine procurement becomes more than a defence transaction. It is a litmus test of the Philippines’ evolving foreign policy and its ability to manage a diverse portfolio of strategic partners.
The Philippine Navy has yet to announce a final selection, but sources within the Department of National Defense suggest that a decision could come within the next 12 months. With regional threats rising and political pressure building, the administration will want to act decisively.
Whatever Manila chooses, the deal will set a precedent. It will shape the Philippine Navy’s capabilities for the next three decades, define its posture in the South China Sea, and determine the country’s defence-industrial partnerships in a rapidly shifting global order.
For Fincantieri and TKMS, the goal is clear: win not just the contract, but the future. The same is true for every other contender. In Southeast Asia’s emerging maritime chessboard, the Philippine submarine deal isn’t just another move. It’s the start of a new game.
