Make American Shipbuilding Great Again – Philippines Edition.

The global maritime industry is undergoing a transformation shaped by geopolitical alliances, industrial modernization, and the revival of strategic shipbuilding capacity. 

At the forefront of this effort is the U.S. “Make American Shipbuilding Great Again” (MASGA) strategy, a framework designed to restore America’s shipbuilding strength while leveraging key partnerships in Asia.  Central to this initiative is South Korea—a global leader in shipbuilding—and its collaboration with the United States through both government-to-government agreements and private sector alliances.

The U.S.–South Korea Shipbuilding Alliance

South Korea’s shipbuilding giants, including Hyundai Heavy Industries (HHI), represent unparalleled expertise in commercial and naval shipbuilding.  The United States, seeking to rebuild its naval and commercial fleets amid rising competition in the Indo-Pacific, has turned to South Korea as a critical partner.  This strategic alignment has resulted in a series of agreements focused on technology transfer, joint production, and investment in shipyard facilities across the U.S.

Central to the renewed U.S.–South Korea economic partnership is the Korean Development Bank funded MASGA initiative.  Introduced as part of broader trade negotiations in July 2025, South Korea pledged $150 billion toward revitalizing U.S. shipbuilding—spanning construction of new yards, workforce training, and Navy ship repairs.  Lying at the heart of the MASGA strategy is not only the goal of strengthening America’s shipyards, but also of building a resilient trans-Pacific supply chain.  By working with South Korean partners, the United States ensures access to advanced maritime technologies, reduces production bottlenecks, and enhances defense readiness in the face of regional challenges.

Subic Bay: A Strategic Investment

A critical piece of the MASGA puzzle is the partnership between Cerberus Capital Management, a U.S.-based private equity firm with significant defense and logistics holdings, and Hyundai Heavy Industries.  Their cooperation extends beyond the United States, with major implications for Southeast Asia—particularly the Philippines.

The story of Subic Bay's shipyard cannot be told without recalling the dramatic bankruptcy of Hanjin Heavy Industries and Construction Philippines in 2019, once the crown jewel of Philppine maritime manufacturing. At its peak, the Subic facility was among the largest shipyards in the world, employing over 30,000 workers. Following Hanjin's collapse under more than $1 billion in debt, control of the yard became the subject of intense international competition. Chinese state-linked companies quickly expressed interest, raising concerns in Manila and Washington about strategic vulnerabilities. Australian investors also entered the fray, seeking to establish a regional foothold in ship repair and naval support. Ultimately, it was U.S. based Cerberus Capital Management that secured control in 2022, leveraging its finanical strength and geopolitical alignment with Philippine and American security interests. This outcome safeguarded Subic Bay from falling into potentially adversarial hands while setting the stage for a revitalized partnership with global players like Hyundai Heavy Industries.

Subic Bay’s deep-water port, extensive infrastructure, and strategic location near the South China Sea make it an ideal hub for shipbuilding, repair, and logistics operations. The Cerberus–Hyundai partnership is breathing new life into the shipyard, creating opportunities not only for defense-related work but also for commercial shipping, energy, and logistics projects. 

For the United States, the revitalization of Subic Bay offers a dual advantage: strengthening allied naval capabilities while ensuring that private industry contributes to distributed logistics capacity in the region.  

For South Korea, it offers expanded industrial reach into Southeast Asia, reinforcing its status as a global shipbuilding powerhouse and solidifying its trade relationship with the United States and its Make American Shipbulding Great Again maritime strategy.

For the Philippines, it brings jobs, technology, and investment—helping to anchor its position as a vital maritime partner in the Indo-Pacific.

What does it all mean?

These developments are a direct signal of the Philippines’ growing role in the future of maritime and defense logistics.  With Subic Bay emerging as a critical hub for shipbuilding and repair, logistics providers will play a key role in supporting the flow of materials, personnel, and supply chain networks.

The MASGA strategy, the U.S.–South Korea alliance, and the Cerberus–Hyundai partnership all converge at Subic Bay, underscoring the Philippines’ importance in a rapidly evolving Indo-Pacific maritime environment. For organizations in both the defense and commercial sectors, this means unparalleled opportunities to leverage world-class infrastructure and a robust regional logistics ecosystem.