What are Japan Aegis ships, and what do they do?

Japan Aegis ships are Aegis System Equipped Vessels designed for long-range air and missile defense. They carry the SPY-7 radar and a modern combat system to track and engage threats. The large hulls support power, cooling, and endurance for extended missions in Japan’s surrounding seas.

Why do the ships cost over JPY 1.9 trillion for two?

Costs reflect advanced sensors, combat systems, integration, and long-deployment needs rather than just hull steel. The SPY-7 radar adds major power and cooling demands. In addition, testing, software, logistics support, and training spread across several years raise total program expense for Japan defense procurement.

When and where will construction begin?

Construction is seen starting at Mitsubishi Heavy Industries’ Nagasaki yard. The program will likely run over several fiscal years, with staged payments tied to milestones such as section build, integration, and sea trials. Investors should watch for official contract awards, keel-laying events, and test schedules to confirm progress.

Who could benefit from the program?

Prime shipbuilders and second-tier yards should see stronger backlogs. Suppliers of marine steel plate, propulsion equipment, electrical systems, and integration services may also gain. Radar and combat system providers tied to SPY-7 could see steady software and support revenue as testing advances across the multi-year program.

Global Market Insights

January 02: Japan’s Aegis Ships Cost JPY 1.9T—Shipyards, Radar in Focus

ByDanny Kontos January 2, 2026January 2, 2026

Japan Aegis ships will cost over JPY 1.9 trillion for two vessels, signaling a long pipeline for the domestic naval industry. Construction is expected to begin at Mitsubishi Heavy Industries’ Nagasaki yard, with large hulls driven by the heavy SPY-7 radar and room for longer deployments. The Aegis System Equipped Vessel plan marks steady Japan defense procurement, but also raises questions on budget oversight, staffing, and survivability choices. For investors, this offers multi-year visibility across shipyards, steel, engines, and radar integrators. We outline likely beneficiaries, execution risks, and key milestones to track in 2026 and beyond.