Taiwan will start building the first of eight super-quiet, diesel-electric attack submarines in December. The submarines are a defense against China's navy.
President Tsai Ing-wen said the construction of the fleet was a "historic milestone" for Taiwan's defense and the overcoming of "various challenges and doubts."
"The construction demonstrates Taiwan's strong will to the world to protect its sovereignty," she said at a ceremony in the southern port city of Kaohsiung.
"Submarines are important equipment for the development of Taiwan's navy's asymmetric warfare capabilities and to deter enemy ships from encircling Taiwan."
Brent Christensen, the de facto U.S. ambassador to Taiwan as Director of the American Institute in Taiwan, was present at the ceremony.
The Ministry of National Defense will spend $341.33 million for the submarine. CSBC Corp. is building the submarines and said the first will be launched in 2025.
Chairperson Cheng Wen-lung said the company faced difficulty procuring parts and "external forces hindering the development of this program."
In 2018 the U.S. allowed U.S. manufacturers to participate in Taiwan's submarine program and is providing components.
The eight boats will increase Taiwan's submarine fleet to 10.
