“Japan will propose budgeting around 100 billion yen ($628 million) to help domestic companies procure ships that can lay undersea cables as costs soar and Chinese competition rises, Nikkei has learned.”
“[Ministry of Internal Affairs and Communications] is considering covering roughly half of vessel procurement costs, which can run to more than 40 billion yen each. Costs have risen on a weak yen and more expensive materials.”
“This will represent Japan’s first direct support for the purchase of cable-laying ships.”
“Japanese companies have a limited number of cable installation ships, which are aging. Tokyo fears a loss of Japanese market share could weaken the country’s strategic autonomy.”
“Security concerns also have grown. Cable disruptions near Taiwan and in the Baltic Sea have raised suspicions of Chinese and Russian involvement.”
“France’s Alcatel Submarine Networks is the global leader in manufacturing undersea cables, with a roughly 40% market share, followed by U.S.-based SubCom with about 30% and Japanese tech group NEC with around 20%. China’s HMN Technologies, formerly owned by Huawei Technologies, holds almost 10%.”
“Though NEC has some technological advantages, it does not operate its own installation vessels…”