The UK will deliver more than 150 commercial and naval vessels in the next 30 years.
It's part of the Government's refreshed National Shipbuilding Strategy set out by the Prime Minister and Defence Secretary at the Cammell Laird Shipyard, Merseyside, on Thursday.
Included in the strategy will be large warships, such as Type 26 and Type 31 ships, Border Force cutters, Fleet Solid Support (FSS), lighthouse vessels and the new National Flagship.
Mr Wallace said it was "an exciting time to be involved in the sector".
"With significant Government investment, we will be levelling up across our shipbuilding, workforce, from shipyard to supplier, from procurement to designer, creating tens of thousands of new employment opportunities, boosting living standards and pay," he said.
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"Our refreshed strategy will see the sector galvanised at a crucial time for our economy and see a vital part of British industry expand and flourish."
Boris Johnson described the strategy as "a huge investment in shipbuilding" with "£4bn going in" driving "tens of thousands of high-wage, high-skill jobs around the whole of the UK".
First published in 2017, the National Shipbuilding Strategy set out aims to transform naval procurement – securing export and design contracts for British ships to Australia and Canada.
The refresh looks to introduce further Government ambitions to "reinvigorate" the whole British shipbuilding industry.
This will see more than £4bn of Government-wide investment set for the shipbuilding sector across the next three years.
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The pipeline of new ships will both "encourage investment" and "maximise the social value contribution shipbuilding can make in the UK", according to the Ministry of Defence (MOD), whilst also fully meeting the requirements of the Royal Navy.
Additionally, the Department for Transport will invest £206m in the UK Shipping Office for Reducing Emissions (UK-SHORE) to research and develop zero-emission vessels and infrastructure.
The refresh of the National Shipbuilding Strategy will also establish a new Shipbuilding Skills Taskforce, led by the Department for Education.
The taskforce will work with industry and training providers across the UK to identify and address skills gaps.
The refreshed National Shipbuilding Strategy also goes beyond the MOD's initial commitment to double shipbuilding investment over the life of the current Parliament.