Subsea cables have become critical infrastructure as demand for AI, cloud services, and data traffic increases. For all countries, this makes maintaining the cables absolutely vital – putting pressure on companies to improve or expand their cable-laying fleets.
The government funding seeks to circumvent the issues that put Japan at a disadvantage against its international competitors. Japanese companies face stricter restrictions on accepting orders and construction timelines, putting them behind their global counterparts.
Japan’s revised Economic Security Promotion Law, enacted in June, allows the government to provide further financial backing for companies aiming to build a cable-laying fleet. The Internal Affairs and Communications Ministry included a ¥100 billion (US$630 million) subsidy initiative in its budget proposal for the upcoming fiscal year that sets out to cover 50% of the necessary construction costs.
The US, UK, and France are reported to have around 10 cable-laying ships each, which are owned by domestic companies. However, Japanese companies have a combined fleet of only five specialised cable-laying vessels which weigh 5,000 tons or more.
These ships are spread across two companies, with an NTT Group company owning three and a KDDI group subsidiary owning two. While the vessels have a lifespan of about 40 years, some of the five ships are over 30 years old and in need of refurbishment or retirement.
Furthermore, NEC Corporation, which owns around 20% of the global subsea cable manufacturing market, charters ships from international companies rather than maintaining its own fleet.
Relying on foreign fleets can delay repairs. Companies must wait for the distant vessels to arrive and, as international fleets are also small, availability can be an issue.
The government funding will allow NTT, KDDI, and NEC to upgrade their vessels or acquire new ones.
Keep the cables shipshape
The state of the Japanese fleet has raised concerns for the country’s resilience as the AI race continues and demand for infrastructure grows. Some of the concerns surround Japan’s economic security, as its fleet size lags far behind both its European and US competitors.
Other concerns focus on the security of the cables themselves. Japan suffers from large typhoons, which can cause damage to the cables’ structure.
International situations also highlight potential threats to Japan’s cables. Several subsea telecoms cables have been severed in the Baltic Sea since 2024, which investigations concluded were usually due to negligent vessels dragging anchors across the seabed.
However, geopolitical suspicions have also been raised, with Russia and China in particular accused of intentional sabotage in the Baltic Sea and Taiwan, respectively. The threat is enough to push several countries and unions to reinforce their cable maintenance and security.
Notably, in 2025 NATO launched a fleet of ships and drones to prevent attacks on subsea cables and pipelines in the Baltic Sea, as the region features major links between several European countries.
As the world relies more and more on telecommunications, the global surge to secure cable-laying capacity has become multifaceted; it focuses on both market competitiveness and national security.
By reforming its fleet, the Japanese government – and the governments of countries doing the same – are demonstrating how subsea cable networks have become critical infrastructure.
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