Japan to showcase MSDF frigate in Australia as it bids for contract

If Japan wins this contest, then it could backfire since Mitsubishi's capacity would be so full it cannot compete on construction of US frigate and destroyers. Japan withdrew from Canada's 12 submarine contest citing the desire to focus on Australia's frigate program.

In case you aren't aware, the US government is trying to revise the law to allow acquisition of naval ships from "Allied nations" to overcome construction bottleneck.

https://www.msn.com/en-us/money/topstories/u-s-senators-introduce-bill-on-leveraging-trusted-allies-shipyards-to-build-naval-vessels/ar-AA1yQCmV?ocid=msedgdhp

U.S. senators introduce bill on leveraging trusted allies' shipyards to build naval vessels

WASHINGTON, Feb. 11 (Yonhap) -- Two U.S. senators have introduced a bill to allow the U.S. Navy to build naval vessels in a trusted ally's shipyard in order to modernize and expedite construction and procurement processes for U.S. maritime forces, according to one of the lawmakers.

https://www.marinelink.com/news/s-korea-shipyards-soar-us-bill-eyes-navy-522217

S. Korea Shipyards Soar as U.S. Bill Eyes Navy, USCG Ship Construction Options

Shares in South Korean shipbuilders HD Hyundai Heavy Industries and Hanwha Ocean rose more than 15% and 16%, respectively, today, after two U.S. senators debuted a bill to allow the U.S. Navy to build naval vessels in a shipyard located in a U.S. allied country.

Samit, the frigates will be built in Australia so it won't tie down Japanese yards.

The bill you refer to in the US Senate will die in committee. The US government is trying to increase domestic shipbuilding capacity, not move it abroad. Last December Hanwha closed a deal to buy the old US Naval Shipyard in Philadelphia.