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Code, Capital, and Warships: Inside the $150 Billion Blueprint for the Automated American Shipyard

Siemens Digital Industries Software's chief, TONY HEMMELGARN (pictured), makes a COMPELLING CASE for next-generation shipbuilding tech.
International power struggles cut deep into the PLM world. A striking example is unfolding in the US, where Donald Trump's trade tariffs, South Korea's industrial power, and the American MASGA (Make American Shipbuilding Great Again) initiative have converged. At the technological helm stands Siemens Digital Industries Software, which recently signed a monumental, nine-figure agreement—estimated by analysts between $100 million and $350 million—with South Korean shipbuilding giant HD Hyundai (owner of Ulsan, the world's largest shipyard).
The backdrop features intense diplomatic chess. During recent bilateral negotiations, South Korea successfully leveraged concessions to lower proposed US tariffs from 25% to 15%. In return, Seoul pledged a massive $150 billion investment package directly targeted at modernizing the US naval and commercial shipbuilding sectors.
These investments arrive at a critical juncture. American commercial shipyards face a steep, decades-long decline. Globally, the US shipbuilding footprint is remarkably small, accounting for less than 0.5% of the world's gross tonnage. Instead, the global commercial market is overwhelmingly dominated by an Asian triumvirate—China, South Korea, and Japan—which collectively controls over 90% of global capacity.
The military implications of this imbalance are equally stark. Rapid Chinese naval expansion deeply concerns the Pentagon, which is legally mandated to build all military vessels domestically. Through MASGA, the Trump administration aims to aggressively reverse this decline by importing, developing, and leveraging South Korea’s world-class, automated shipbuilding expertise.
The Siemens/Hyundai deal connects directly to the large-scale digital platform initiatives embedded within MASGA. Siemens Xcelerator will serve as the heart of this collaboration. Its core suites—Teamcenter (PLM/PDM), NX CAD (3D design), Simcenter (Simulation & Analysis), Siemens EDA (Electronic Design Automation), and Polarion (Application Lifecycle Management)—will collectively form the unified digital backbone for tomorrow's American shipyards.
Through these capital injections and technological transfers, the South Korean group and Seoul have committed to automating and rebuilding American manufacturing capacity. The ultimate goal is to establish a scalable, unbroken digital thread. This thread will seamlessly integrate everything from initial design, engineering, and physical production to downstream simulation and long-term lifecycle management.
"As a leader in industrial AI, engineering, manufacturing, simulation, and operational software, Siemens is uniquely positioned to transform how shipyards design, build, and maintain next-generation vessels," says Tony Hemmelgarn. Yet what do the blueprints for its realization actually look like?

Tony Hemmelgarn emphasizes that this strategic alliance extends far beyond basic technology implementation—it establishes a resilient new blueprint for modern maritime engineering. ”By combining Siemens’ digital capabilities with HD Hyundai’s operational excellence, we can help shipbuilders improve throughput, quality, and workforce productivity,” Hemmelgarn notes, highlighting its potential to sharpen U.S. shipbuilding competitiveness.

HD Hyundai signed a definitive agreement with global engineering company Siemens for the adoption of the ’Next-Generation Marine Platform’ during the opening ceremony of the Korea-U.S. Shipbuilding Partnership Center in Washington, D.C. on Thursday, July 23rd. From left: Kim Jung-kwan, Minister of Trade, Industry and Resources; Kim Hyung-kwan, President & CEO of HD Korea Shipbuilding & Offshore Engineering; Tony Hemmelgarn, President & CEO of Siemens Digital Industries Software; and Howard Lutnick, U.S. Secretary of Commerce. Image: The Manila Times

H.K. Kim, President and CEO of HD Korea Shipbuilding & Offshore Engineering, underscores AI’s profound long-term impact on the sector. ”AI is not merely a tool for improving productivity,” Kim asserts. ”It is a transformative force reshaping how vessels are designed, constructed, and operated.” By weaving artificial intelligence, digital twins, and automation into a unified digital shipyard, the partnership aims to forge a future-ready model for global shipping. Together, Siemens and HD Hyundai seek to accelerate shipyard digitization worldwide while revitalizing the modernization and competitiveness of the U.S. maritime industry.

The Hanwha Philly Shipyard in Philadelphia, which South Korea’s Hanwha Group acquired for $100 million in December 2025 in its foray into the US market. Image: Courtesy of Hanwha Group.

The Blueprint of the Digital Shipyard: Unleashing the Xcelerator Portfolio
Modernizing a shipyard requires far more than merely replacing legacy machinery; it demands a complete architectural overhaul of data. To scale American shipbuilding capacity to the heights envisioned by the MASGA initiative, HD Hyundai and Siemens are deploying the Siemens Xcelerator portfolio. This integration effectively dismantles the traditional walls separating design, engineering, and the physical shipyard floor.
At the core of this technological evolution is the creation of a true ”digital twin” encompassing both the vessel and the shipyard itself. By establishing an unbroken digital thread, engineers can simulate and optimize a ship’s entire lifecycle long before a single sheet of steel is ever cut.

[ NX CAD: 3D Design ] ──> [ Teamcenter: Unified Digital Thread ] ──>

                [ Simcenter: Physics & AI Simulation ]

                                      │

                        [ Digital Twin of the Shipyard ]

                                      │

                                      ▼

                    [ Automated Robotic Steel Fabrication ]

The Connected Tech Stack
This maritime transformation relies on a highly integrated suite of specialized software tools acting in unison:

  • NX CAD (Generative 3D Design): Enables engineers to construct massive, complex structural models of naval vessels with millions of individual components, handling everything from hull geometry to intricate piping and electrical routing.
  • Teamcenter (The PLM Backbone): Serves as the single source of truth, managing vast amounts of configuration data and ensuring that engineering changes instantly propagate across global supply chains.
  • Simcenter (Physics & AI Simulation): Simulates hydrodynamic performance, structural stress, and thermal behavior under extreme maritime conditions, drastically reducing the need for costly physical prototyping.
  • Siemens EDA & Polarion: Manages the exploding volume of electronic components and software code built into modern, automated warships, aligning hardware engineering with software lifecycle management.
Siemens’ technologies and HD Hyundai’s advanced engineering will modernize U.S. shipyards, develop workforce skills and strengthen the maritime industrial base.

From Digital Design to Automated Heavy Industry
The ultimate return on investment for this software suite lies in how it dictates action on the physical shipyard floor. In traditional shipbuilding, translating a 3D blueprint into heavy manufacturing is plagued by manual translation errors, causing massive delays.
Under the new Siemens–HD Hyundai framework, the digital twin communicates directly with advanced robotics and automated steel-cutting machinery. Software algorithms automatically nest parts to minimize steel waste, program welding robots, and orchestrate autonomous guided vehicles (AGVs) moving multi-ton hull blocks across the yard. By combining industrial AI with the Xcelerator platform, the partnership aims to bring the precision and speed of automotive assembly lines to the massive scale of the maritime industry.
At the core of the transformation is, as mentioned above, an integrated digital thread powered by Xcelerator technologies. This ecosystem includes Designcenter software for product engineering and ship design, Teamcenter for PLM and configuration control, and Opcenter for manufacturing operations management. It also utilizes Plant Simulation for production planning and optimization, alongside Intelligence Center X for industrial AI orchestration.

VP and Head of Maritime at Siemens Digital Industries Software, Brittany Ng, leads software sales and strategy for the U.S. Navy, Coast Guard, and commercial shipbuilding. She is a prominent advocate for industrial artificial intelligence and digital shipbuilding. “By connecting engineering, planning, and production through an integrated digital thread, we can help shipbuilders make more informed decisions,” she says.

Together, these technologies create a common digital foundation that connects engineering, manufacturing, suppliers, and shipyard operations. The result enables AI-powered insights, intelligent automation, and data-driven decision-making across the shipbuilding lifecycle.
”Establishing a practical blueprint creates an opportunity for shipyards to modernize operations while continuing to execute today’s critical programs,” said Brittany Ng, VP of Maritime at Siemens Digital Industries Software. ”By connecting engineering, planning, and production through an integrated digital thread, we can help shipbuilders make more informed decisions earlier, reduce costly disruptions during construction, and create a more connected path from concept to delivery.”

A New Shipbuilding Center in Washington, D.C.
As part of this sweeping initiative, HD Hyundai and Siemens are backing the launch of the U.S.-Korea Shipbuilding Technology Cooperation Center in Washington, D.C. The facility is designed to deepen collaboration among government officials, industrial players, and technology leaders focused on the digital future of maritime manufacturing. Acting as a strategic hub, the center will pioneer modernization strategies, fast-track the adoption of digital shipyard tech, and spearhead workforce development programs aimed at securing a competitive edge for the U.S. and its allied markets.

In the multi-million-dollar collaboration between Siemens and HD Hyundai, comprehensive DIGITAL TWIN technology serves as the core ”digital backbone” and virtual operatioing system. It links massive 3D vessel designs containing millions of parts directly to real-time shipyard manufacturing, automating assembly lines and cutting production errors. Core Roles of the Digital Twin are:
Single Source of Truth: Connects disconnected data silos—spanning CAD, PLM, automation, and simulation—into one continuous digital thread from initial engineering to physical production.
Industrial Metaverse & Visualization: Utilizes Siemens’ Digital Twin Composer software to build photorealistic, interactive virtual models of both complex ships (such as hydrogen- and ammonia-powered vessels) and entire shipyard sites.
Physical AI Training: Implements reinforcement learning in a virtual environment using synthetic industrial data to train automated robots and AI systems before deploying them safely on the physical shop floor.
Process Optimization: Validates assembly workflows, block building, and fit-up procedures virtually to eliminate bottlenecks, reduce costly rework, and increase shipyard manufacturing capacity.
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