Breaking News: Italy’s Fincantieri and Germany’s TKMS Sign Strategic Agreement to Equip Philippine Navy with Submarines.

Italian shipbuilding giant Fincantieri and German defense company thyssenkrupp Marine Systems (TKMS) have officially signed an industrial cooperation agreement to provide the Philippine Navy with advanced submarine capability solutions. Announced on April 16, 2025, this strategic partnership aims to merge the technological expertise and production experience of both companies to offer a comprehensive and modern submarine solution tailored for the needs of the Philippines. The centerpiece of this collaboration is the U212 Near Future Submarine (U212 NFS), a next-generation submarine currently being built by Fincantieri for the Italian Navy.
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Scale model of the U212 Near Future Submarine (NFS) displayed at the World Defense Show 2024, showcasing advanced features of the next-generation platform. (Picture source: Army Recognition Group)

The agreement is a crucial step in the Philippines' ongoing defense modernization efforts, especially under the "Re-Horizon 3" procurement program, which allocates between PHP 80 billion and PHP 110 billion (roughly $1.38 billion to $1.89 billion) for the acquisition of at least two diesel-electric submarines, complete with support facilities, training, and logistical infrastructure. The U212 NFS submarines offer a highly competitive solution for this requirement, with both cost-efficiency and cutting-edge technology at the forefront of the offer.

Currently, the Philippine Navy does not operate any submarines, making it one of the few maritime forces in the region without an undersea warfare capability. This lack of submarines presents a critical vulnerability for a nation composed of over 7,600 islands and with extensive maritime borders in contested waters such as the South China Sea. According to General Romeo Brawner Jr., Chief of Staff of the Armed Forces of the Philippines, acquiring submarines is a “dream” and a strategic necessity to effectively safeguard national sovereignty and maintain a credible deterrent posture. He emphasized that for an archipelagic country like the Philippines, it is "really difficult to defend that entire archipelago without submarines.”

The U212 NFS (Near Future Submarine) represents one of the most advanced non-nuclear submarines in production today. Derived from the combat-proven Type 212A developed by TKMS and operated by the German and Italian navies, the U212 NFS introduces several enhancements. It incorporates an air-independent propulsion (AIP) system based on fuel cell technology, allowing the submarine to remain submerged for extended periods—potentially weeks—without surfacing. This is crucial for stealth operations and long-duration patrols, particularly in surveillance and deterrence roles.

One of the key innovations in the U212 NFS is its adoption of lithium-ion battery technology, replacing traditional lead-acid batteries. This upgrade significantly improves energy density, enabling faster recharges and longer underwater endurance. The submarine features a low acoustic signature, advanced sonar suites, integrated combat management systems, and modular torpedo tubes compatible with heavyweight torpedoes and anti-ship missiles.

The inclusion of such submarines in the Philippine fleet would be a transformative development. Not only would it grant the Philippines undersea situational awareness and strike capabilities, but it would also enhance maritime domain control and deter aggressive actions in disputed waters. Submarines are inherently difficult to detect and can serve as a powerful psychological and tactical deterrent, complicating adversary planning and operations.

Furthermore, the cooperation agreement between Fincantieri and TKMS goes beyond simple procurement. It emphasizes long-term industrial collaboration, potentially opening the door to technology transfer, local shipyard development, and maintenance capabilities within the Philippines. This would help establish a sustainable submarine fleet by fostering domestic support infrastructure, technical expertise, and operational self-reliance.

While France’s Naval Group and South Korea’s Hanwha Ocean have also presented compelling offers with their Scorpène-class and Jangbogo-III submarines respectively, the combined Italian-German proposal leverages a proven design adapted with next-generation features, making it a strong contender in the Philippine Navy’s submarine program.

The Fincantieri-TKMS alliance offers not just a platform but a comprehensive capability package for the Philippines. It promises to fill a critical gap in the country’s maritime defense posture, elevate its status in regional naval capabilities, and significantly contribute to national and regional maritime security.