Japanese, Korean Shipbuilders Deploy Robots as China Captures 63% of Orders
Updated
Updated · Financial Times · Oct 4
Japanese, Korean Shipbuilders Deploy Robots as China Captures 63% of Orders
3 articles · Updated · Financial Times · Oct 4
Summary
South Korean and Japanese yards are accelerating “smart shipyard” rollouts as labor shortages, long backlogs and cheaper Chinese rivals squeeze their competitiveness.
63% of global ship orders went to China last year, while Japan and South Korea still account for 40% of vessel production and hold key expertise in LNG carriers, submarines and marine engines.
HD Hyundai Samho says robots can lift welding output to 50 cells a day from 30 for a worker, and Hanwha Ocean says one operator can oversee up to 10 welding robots.
The automation push remains costly and technically hard: Hanwha has spent Won160 billion in two years and targets 70% automation by 2030, while HD Hyundai aims for a small AI-driven “dark factory” by 2030.
Executives and researchers say robots are now essential for survival, but China’s faster rollout and stronger state backing could blunt Japan’s and South Korea’s catch-up effort.
Can Asian AI and robotics actually rescue America's struggling naval shipyards before global supply chains fracture?
As China's workforce shrinks, will the multi-billion-dollar race for dark shipyards crown a new king of global maritime trade?
If shipbuilding remains notoriously custom, will virtual AI simulations truly solve the physical bottlenecks of heavy industry?
Automation and Geopolitics in Global Shipbuilding: How China’s 66% Market Share Is Forcing a Technological Revolution (2025–2035)
Overview
The global shipbuilding industry is undergoing a major transformation as China dominates with massive subsidies and cost advantages, holding over 60% of the market. This has forced South Korea and Japan to modernize through digital shipyards and robotics, while the U.S. struggles with a shrinking workforce and low wages. Worldwide, shipyards are adopting automation to address labor shortages, but high costs and cybersecurity risks limit rapid progress, especially for smaller builders. Governments are responding with long-term procurement strategies and international alliances, such as U.S.-Japan robotics projects, aiming to rebuild capacity, transfer technology, and shift shipyard jobs toward digital and supervisory roles.