Licensed fighter jet production: How nations build power without starting from scratch

Why an important component of choosing fighter jets is receiving permission to assemble them locally under licence.

Lockheed Martin F-35 and F-16

Designing and building a frontline fighter jet from scratch is an immense technical and financial challenge, one that only a handful of countries can realistically pursue.

For others, producing aircraft under license offers a valuable compromise: access to advanced combat capabilities while developing local aerospace skills and protecting strategic independence.

Licensed production takes many forms. Some countries receive semi-finished aircraft, known as knock-down kits, for local assembly. Others are granted rights to manufacture large portions of the jet domestically using shared blueprints, tooling, and know-how.

Why do countries produce fighter jets under license?

Only a few countries are able to design and produce frontline fighter jets by themselves. Most countries want to develop and protect their defence base as much as possible. But developing and producing advanced fighter jets is a gargantuan effort that can break a country’s aerospace sector.

F-35 assembly line
Photo: DVIDS

The risks of going it alone are evident in history. Canada’s ambitious CF-105 Arrow program was abruptly cancelled in 1959, damaging its aerospace industry for decades. Israel’s IAI Lavi suffered a similar fate in 1987, though the experience fed into Israel’s later success in drone technology and fighter modification.

One compromise is to purchase a fighter jet from another country with permission to produce that aircraft under license. This helps countries develop or maintain their abilities to develop fighter jets in the future if they choose to.

Through the Cold War, China and India built numerous licensed copies of Soviet aircraft, while the European F-16s being sent to Ukraine were originally built in Europe under license. The US Air Force states Belgium provided final assembly of the F100 engine for the jet.

Foreign-assembled US fighter jets

Today, four American fighter jets are in production: the F-16 Fighting Falcon (export only), F-15EX Eagle II, F/A-18 Super Hornet, and the F-35 Lightning II family. These are mostly built in the United States, but some final assembly and component production is done abroad.

In the Cold War era, European-built F-16s were produced under license in Belgium and the Netherlands for local air forces. Those production lines closed decades ago, and the countries involved are now switching to the F-35A.

Japan is not banned from buying F-35
Photo: DVIDS

The F-35 is primarily assembled in Fort Worth, Texas, but Lockheed Martin also operates Final Assembly and Check-Out (FACO) facilities in Nagoya, Japan, and Cameri, Italy.

Japan’s F-35As are assembled locally by Mitsubishi, which also produces wings. However, its F-35Bs are assembled in the US.

Italy’s Cameri plant assembles F-35s for Italy, Belgium, the Netherlands, and Switzerland.

Switzerland’s RUAG has received permission to assemble at least four F-35As in Switzerland, with others assembled in the US and Italy. It’s unclear if those Swiss-built F-35s still need to go to Cameri or not.

F-35
Photo: USAF

Other European F-35s may also be produced there, but it’s difficult to find confirmation. British F-35Bs are assembled in Fort Worth, although Britain supplies around 15% of the components found in every F-35 built. German F-35As are being built in the United States.

Foreign-assembled Russian fighter jets

During Soviet times, Soviet fighter jets were being produced under license by the thousands in India, China, and elsewhere. Those days are long gone.

Since the passing of the US CAASTA Act of 2017 and the subsequent 2022 invasion of Ukraine, Russia has seen its fighter jet exports collapse.

Today, China is moving on to producing its domestically made, more advanced fighter jets like the J-35, J-20, J-10C, and 6th-gen fighters in development. That said, it appears China is still producing the Shenyang J-16 in large numbers.

The J-16 is a Chinese development of the Soviet Sukhoi Su-27 and now features domestic Chinese Shenyang WS-10A engines. It’s unclear how many Russian components are still imported.

Indian Air Force Su-30MKI
Photo: Wikimedia Commons

India continues to produce Russian Sukhoi Su-30MKIs under license. These Flankers form the backbone of the Indian tactical fighter jet fleet, and the service has around 259 examples in service. India has placed an order for another 12 Su-30MKIs to be built in India to replace losses from accidents over the years.

There was some talk about Iran locally assembling Su-35 and/or Su-30 fighters. Su-35s that had been thought would be sold to Iran instead turned up in Algeria.

By the time of Israel’s June 2025 aerial campaign against Iran, it hadn’t received any Russian jets. According to Newsweek, after the brief war, Iran signalled it may be more interested in purchasing Chinese J-10Cs instead.

Foreign-assembled European fighter jets

Europe currently has three frontline fighter jets in production: the French Dassault Rafale, the European Consortium Eurofighter Typhoon, and the Swedish Saab Gripen.

India has emerged as a major buyer of French Rafales. In June 2025, Dassault Aviation announced a partnership with India’s Tata Advanced Systems (TASL) that will see the Rafale’s fuselage produced in India. The first Indian-built fuselage is set to roll out in 2028 and will be the first time a Rafale fuselage has been built outside of France.

Dassault Rafale
Photo: Dassault Aviation

This is in addition to other parts of Rafales already being built by Dassault Reliance Aerospace Limited in Nagpur, India. Otherwise, the Rafale has previously been almost entirely built in France.

The Eurofighter Typhoon is built by a consortium made up of the United Kingdom, Germany, Italy, and Spain, with production occurring in each of those countries.

Saudi Arabia had reached an agreement with the UK to purchase 72 examples, with 24 assembled in the UK and 48 in Saudi Arabia. However, due to security concerns, these were ultimately assembled in the UK. Saudi Arabia is currently negotiating to purchase another 48 Eurofighters.

Turkey is closing in on a deal to purchase 40 Eurofighters, which will be assembled at the plant at Warton in England. This is a welcome development for BAE Systems’ currently idle Eurofighter facility, experiencing a gap between orders.

AI powered saab gripen
Photo: Saab

Brazil is the largest export customer for the Swedish Saab Gripen and is purchasing at least 36 examples. Thanks to Embraer, Brazil boasts a large aerospace sector.

According to Saab, Embraer is assembling 15 of these aircraft at its facility in Gavião Peixoto, where it produces the C-390 Millennium tactical airlifter. These appear to be the only European frontline fighter jets currently being assembled outside of Europe.

Licensed fighter jet production remains a strategic tool for countries seeking capability without the cost of full autonomy. The level of industrial benefit depends heavily on the terms of the deal, but for many, it offers a vital route to strengthening defence ties, securing jobs, and laying the groundwork for future sovereign capability.

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