Japan’s Ministry of Internal Affairs and Communications will subsidize 50% of construction costs for new subsea cable-laying vessels. This initiative aims to strengthen the domestic fleet and reduce reliance on foreign-leased ships.
NEC Corporation currently holds a 20% share of the global undersea cable manufacturing market. Despite this market position, the company owns no installation vessels and depends entirely on third-party charters.
NEC, NTT, and KDDI are now evaluating options to order new ships or refit existing vessels to qualify for the funding. Internalizing these capabilities would allow NEC to bypass high charter rates and improve scheduling flexibility. This strategic shift is expected to enhance supply chain control and long-term profitability.