Tsai oversaw the signing of a memorandum of understanding on the construction of subs during a visit to the navy's main base in Tsoying, also spelled Zuoying, today.
The craft will be built through a joint venture between the government's Chungshan Institute of Science and Technology and the formerly state-owned CSBC Corp.
The announcement comes weeks after Tsai announced a USD 2.1 billion investment in the production of air force jet trainers to be designed and manufactured on the island.
Disclaimer: No Business Standard Journalist was involved in creation of this content