The Federal Government is looking at splitting the Adelaide-based shipbuilder ASC into three separate companies.

Reports say it wants to ‘streamline’ the company into dedicated firms for shipbuilding, submarine maintenance and support, and infrastructure.

ASC already has its submarine and shipbuilding businesses separated from each other, and a further five subsidiaries specifically for the construction of the Air Warfare Destroyers, sustainment of the Collins Class Submarines, employment, asset management and infrastructure.

But the Government says breaking it apart even further will allow each are to focus on its core function.

ASC's handling of current projects like the Collins Class sustainment and construction of the Air Warfare Destroyers will continue as planned.

The Government says any changes will not affect employees' terms and conditions, and that none of the new companies will be privatised.