Taipei: Shipbuilder CSBC Corp., Taiwan, announced that Taiwan's first domestically built submarine, the Narwhal, is on schedule for delivery in the second half of this year, "despite political pressure from China." The primary contractor of the Narwhal has been incurring daily fines since missing the initial November 2025 deadline for handing the submarine over to the Navy.

According to Focus Taiwan, CSBC Chairman Chen Cheng-hung addressed the media following the shipbuilder's shareholders meeting, stating that the submarine, also known as Hai Kun in Chinese, has not faced any significant technical issues during sea trials. The vessel is in the process of detailed fine-tuning and functional verification. CSBC is determined to complete testing and deliver the submarine to the Navy later this year, although seasonal monsoons and the upcoming typhoon season could cause minor delays.

Chen emphasized that the indigenous submarine program is a highly intricate defense research and development project, distinct from constructing standard commercial ships or surface warships. Taiwan, lacking prior experience in submarine building, had to develop expertise in design, systems integration, and sea testing from the ground up, which inherently brings timeline uncertainties.

Procuring critical equipment within a sensitive international supply chain has been challenging, Chen explained. He noted that China's suppression of the submarine program "has always existed," with instances where international partner components, ready for shipment, were blocked from export due to Beijing's political pressure. Integrating the submarine's internal systems has also posed significant challenges, with performance issues emerging when individual components are combined, necessitating repeated adjustments and testing.

During the shareholders' meeting, CSBC reported 2025 consolidated revenue of NT$21.78 billion (US$684.5 million) and a net loss of NT$2.27 billion, marking an improvement of NT$521 million from the previous year. The loss was primarily attributed to NT$674 million in foreign-exchange losses due to the Taiwan dollar's appreciation against the U.S. dollar, along with provisions for loss-making contracts, increased warranty expenses, and earlier shipbuilding delays. However, following strategic adjustments and an accelerated pace for commercial vessels and subsequent submarine contracts in the latter half of the year, CSBC has turned a profit for two consecutive quarters.