Author: Joseph O'Connor

Author: Joe O’Connor, Shikhar Chaturvedi, Danielle Kremer, & Wyeth Lindberg 

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This week: Taiwan’s indigenously-produced Hai Kun submarine completed two more submergence tests, progress reports emerged on delivery of Brave Eagle trainer aircraft and T112 battle rifles; Minister of National Defense Wellington Koo warned about payments for HIMARS being due soon; and special budget updates, alongside weekly awards and solicitations. 

Hai Kun Submarine Program Undergoes Additional Tests  

On Tuesday, the Hai Kun (SS-711), a prototype of Taiwan’s indigenous submarine program, undertook its seventh submergence test off Kaohsiung. Marking its 13th sea trial and the first in over a month, analysts speculated that the submarine’s crew did torpedo testing and handling, since certain equipment borrowed from the United States must be returned. 

On Wednesday, the Hai Kun departed again for an eighth test, and appeared to undertake a more comprehensive exercise, including navigation, diving maneuvers, and live-fire torpedo drills, per observers speaking to CNA. Much like the prior test, a large focus appears to be on torpedo testing and overnight testing of seaworthiness. 

News on Brave Eagle Trainers and T112 Rifle Development 

An MND report to the Legislative Yuan revealed on Monday that the Air Force has received 56 “Brave Eagle” advanced jet trainer aircraft so far this year and is expected to receive the remaining 10 by the end of the year. A variant of the Indigenous Defense Fighter jet, the Brave Eagle has been in production and procurement since 2017. 

The same MND report, and an ensuing hearing on Wednesday, revealed that failure rates of new T112 battle rifles will be investigated by the Armaments Bureau, who has also allocated funds for T112 red-dot sight production, to be completed and issued as standard equipment by 2029. The failures of some 500 T112s in ROC Military Police service, including claimed poor barrel quality, have not been reported to the Bureau, but an investigation will occur anyway, per Director Lt. Gen. Lin Wen-hsiang. 

MND Officials Warn Payment for HIMARS Due End of May 

In the same Legislative Yuan hearing as above on Wednesday, Minister of National Defense Wellington Koo and Director of the MND’s Department of Strategic Planning, Lt. Gen. Huang Wen-chi, warned that the final deadline is May 31 for initial payment of High Mobility Artillery Rocket Systems (HIMARS) from the U.S.; and that failure to pay would mean procurement cancellation and further delays if Taiwan wished to re-apply for sale of those systems. 

Huang further stated that the initial payment is valued at NT$800 million (US$25.49 million), and was originally due on March 30, but after coordination between the MND and U.S. authorities, the deadline was set back to late May. DPP legislators, hearing this, expressed concern regarding the deadline, particularly due to delays and lack of agreement in passing a supplemental defense budget, which will fund procurement of HIMARS, as well as Paladin self-propelled howitzers, Javelin anti-armor missiles, and TOW-2B anti-armor missiles. 

Special Budget Updates 

On Tuesday, Kuomintang members of the Legislative Yuan and party members met internally to achieve a compromise on the party’s topline ceiling for the special defense budget, particularly after last week, where divisions began to appear and KMT Vice Chairman Chi Lin-lien threatened to expel LY Speaker Han Kuo-yu from the party for his support of NT$800 billion in spending. At this week’s meeting, KMT legislator Lai Shih-bao made a compromise proposal, consisting of the present NT$380 billion (US$12 billion) ceiling, and amending it to NT$800 billion (US$25.49 billion) once additional Letters of Offer and Acceptance (LOAs) from the United States are received. Lai did note, however, that some KMT members, who are seeking re-election in local elections this year, favor a flat NT$800 billion ceiling to assist their electoral chances.  

On Wednesday, LY Speaker Han Kuo-yu convened the fourth round of caucus negotiations on the special defense budget, which like previous sessions, failed to achieve consensus on the topline budget ceiling, despite recessing to allow more private consultations. Per Han, the LY’s standard 30-day “freeze” policy has elapsed, allowing the three competing proposals (one by the Lai administration + DPP, one by the Kuomintang, and one by the Taiwan People’s Party) to advance to floor consideration. LY consideration of proposals could happen as early as Friday, May 8, per Han. 

Weekly Awards / Solicitations 

On Thursday, the Air Force Command’s Military Mission to the United States awarded the American Institute in Taiwan a NT$10.07 billion (US$319.42 million) contract for non-standard aircraft spare parts and accessories. The contract is to be fulfilled in Taichung (Daya District) Chiayi (Shuishang Township), Tainan (Rende District), Kaohsiung (Gangshan District), Pingtung (Pingtung), Taitung (Taitung), Hualien (Xincheng Township, Ji’an Township). 

Also on Thursday, the Military Police Command solicited bids for the purchase of unmanned aerial vehicles (UAVs) for diversified administrative applications, worth NT$247.20 million (US$7.83 million). 

Authors: Joe O’Connor, Shikhar Chaturvedi, Danielle Kremer, & Wyeth Lindberg 

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This week: special budget negotiations remain stalled, as internal fractures emerge; a Lockheed earnings call gives details on delayed F-16s; the final batch of Abrams tanks are delivered to Taipei; and information comes out about ROCN plans to use V-BAT drones on ships, alongside weekly awards and solicitations. 

Special Budget: Negotiations Stall, KMT Fractures Emerge 

Negotiations on the budget this week continued, with two consultations in the Legislative Yuan’s Foreign Affairs and National Defense Committee ending with little to no consensus reached. A hearing on Thursday elicited some agreement on execution provisions, including members agreeing on LY oversight of reallocation of funds and reporting requirements. The most recent hearing, on Monday, concluded after approximately an hour, with no resolution. LY Speaker Han Kuo-yu later told press that the next hearing would be scheduled for next week, on May 6. 

Separately, internal discussions in the opposition Kuomintang (KMT) and Taiwan People’s Party (TPP) over a unified spending proposal continued, with rumors emerging that both had agreed on a budget ceiling of NT$800 billion (US$25.3 billion). An internal KMT caucus meeting today, however, revealed greater divisions, with members being split between the current proposal for NT$380 billion (US$12 billion), or NT$800 billion. This tension within the party escalated to an extent that KMT Vice Chairman Chi Lin-lien threatened to expel LY Speaker Han Kuo-yu from the party for his support of NT$800 billion in spending. 

Lockheed Earnings Call Provides Updates on F-16  

On Thursday, Lockheed Martin chief financial officer Evan Scott told shareholders in a quarterly earnings call that “issues during the flight test” of F-16 Block 70 fighter jets for Taiwan and Morocco contributed to a decline in profits and resultant delays in delivery. Scott also stated that “we are back on track with a successful flight test and plan to begin deliveries of the first aircraft as soon as this week.” It is unclear whether Taiwan or Morocco will receive airframes first, although previously, Minister of National Defense Wellington Koo stated that he thought they would begin receiving F-16s by September 2026. 

Final Batch of Abrams Tanks Delivered to Taipei 

On April 27th, the third and final batch of M1A2T Abrams tanks, purchased from the United States and equipped with 120mm smoothbore guns and incorporating advanced fire control and hunter-killer systems arrived at Taipei Port, totaling 108 tanks. The first batch consisted of 38 tanks and arrived in December of 2025; the second batch of 42 tanks arriving that July. According to sources, these 28 tanks are split: 10 are to be used by the Equipment and Training Department, while 14 will be allocated to the 269th Brigade. As for the other four tanks, there have been no further details on their disposition. Now that all tanks are present, they will participate in transition training, quality evaluations, and combat readiness. According to MND sources, if training progresses well, the tanks may be ready for service by the end of this year. 

Representing 6.3% of the total US$31.72 billion backlog of U.S. arms sales to Taiwan, as tracked by Taiwan Security Monitor, the delivery of the Abrams represents completion of a US$2 billion sale, originally notified to the U.S. Congress in July 2019.  
 
Future ROCN Ships to Include Space for V-BAT UAVs 
 
Taiwan’s Navy is reportedly planning a “dual hangar” design for its next-generation combatant, with space to support both an MH-60R anti-submarine helicopter and a vertical takeoff and landing (VTOL) unmanned aerial vehicle (UAV). According to Liberty Times, the design evaluation case is expected to move forward in May, and military sources said the Navy has identified Shield AI’s V-BAT as the design reference for the unmanned aviation component. The requirement reportedly includes remote-control and guidance capabilities for the UAV. 
 
The V-BAT’s manufacturer, Shield AI, signed a February 2026 agreement with NCSIST to integrate its Hivemind autonomy platform into Taiwan-developed unmanned systems, and the company says V-BAT is designed for maritime ISR and targeting in GPS-denied and communications-contested environments. 
 
Weekly Awards/Solicitations  

On Friday, the Naval Command made a repeat solicitation of bids for the procurement and installation of nuclear, biological, and chemical (NBC) protection training ground facilities, worth NT$1.51 billion (US$47.9 million). 

On Monday, the Information and Communications Command made a repeat solicitation of bids for the licensing of cloud information services, worth NT$36.03 billion (US$1.14 billion). 

On Tuesday, the Tactical Control Wing of the Air Force Command awarded NCSIST a NT$162.49 million (US$5.14 million) contract for maintenance of the Anyu logistics maintenance system for 2026–2030. 

On Wednesday, the Naval Command made a repeat solicitation of bids for 266 transport trucks and 221 5-ton transport vans, worth NT$1.35 billion (US$42.53 million). 

U.S. Contracts Relating to Taiwan 

On Wednesday, the U.S. Army awarded Lockheed Martin an undefinitized contract action with a ceiling of US$1.13 billion (NT$35.75 billion) for production of High Mobility Artillery Rocket System (HIMARS) launchers, for U.S. forces and FMS customers, including Taiwan and four other countries. Work is expected to be completed by April 30, 2028. 

Authors: Joe O’Connor, Shikhar Chaturvedi, Danielle Kremer & Wyeth Lindberg 

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This week: special budget negotiations continued, featuring statements from key stakeholders; two U.S. Senators introduced an act to expand reporting on the Taiwan Relations Act; the MND released statistics on future ammunition purchases; and the MND released seven major contract awards to American contractors; alongside weekly contracts and solicitations. 

Special Budget: MND Issues Redacted Budget Proposal 

Statements from stakeholders involved in or observing special budget negotiations proliferated this week, beginning with a letter from four U.S. Senators, including Senate Foreign Relations Committee Ranking Member Jeanne Shaheen, expressing to Legislative Yuan leaders the need to “approve a supplementary defense budget” that addresses ongoing U.S. sales to Taiwan, as well as “speedier domestic production.” At a military inspection in Kaohsiung on Friday, President Lai also called for passage, reiterating the need for “constant preparedness.” At a forum in Taipei on the same day, retired U.S. Navy Adm. Mark Montgomery urged the LY to pass a special budget before a Trump-Xi summit in May, warning that not doing so would weaken Taiwan’s relations with the U.S. 

On Sunday, Kuomintang (KMT) media personality, Jaw Shaw-kong, stated that he would support a proposal worth NT$810 billion (US$25.64 billion), tying approximately NT$350 billion of that to existing U.S. arms sales, and holding the remaining NT$460 billion for future U.S. sales. Jaw stated that he came to this number after subtracting budget items for domestic procurement from the Lai administration’s proposal. 

On Monday, the LY’s Foreign Affairs and National Defense Committee held a closed-door hearing, where Minister of National Defense Wellington Koo laid out a new, partially redacted version of the Lai administration’s NT$1.25 trillion (US$40 billion) spending proposal. In the hearing, Koo continued to play defense, responding to Jaw’s comments by urging the MND’s need to plan around operational needs.  

On Tuesday, in a Senate Armed Services Committee hearing, U.S. Indo-Pacific Command commander, Admiral Samuel Paparo, stated that progress on the special budget would reflect “how committed” Taiwan is to its own defense, among other comments. A Reuters report on the hearing also revealed that KMT officials had assured Democratic aides visiting Taiwan in March that a defense proposal would eventually be passed. 

U.S. Senators Introduces Act Expanding TRA Reporting  

A bipartisan group of senators introduced the “Taiwan Relations Reinforcement Act” (S.4294) on April 14, which would require the Department of Defense to submit an annual report assessing the United States’ capacity to fully implement the Taiwan Relations Act (TRA). The bill mandates a detailed evaluation of U.S. ability to deter and respond to a range of Taiwan contingency scenarios, including amphibious invasion, blockade, and large-scale missile strikes, while also assessing gray zone coercion across cyber, economic, and information domains. It further requires analysis of U.S. force posture in the Indo-Pacific and the sustainability of operations in a prolonged conflict, alongside the role of allied contributions. Notably, the report must identify capability gaps, estimate future shortfalls over a ten-year horizon, and outline budgetary and force structure changes needed to meet TRA obligations. The legislation also calls for an assessment of U.S. capacity to respond to a Taiwan contingency in the context of managing other global conflicts, underscoring growing congressional concern over resource constraints and multi-theater readiness. 
 
 

MND Releases Information on Future Commercial Purchases 

On April 21st, Taiwan’s Ministry of National Defense announced a list of weapons systems it intends to acquire through direct commercial sales (DCS) and domestic manufacturing, many of them being unmanned systems and ammunition. The MND stated that this process would involve working with the National Chung-Shan Institute of Science and Technology (NCSIST) and the Armaments Bureau to achieve the expected results. This would all be part of the US$40 billion (NT$1.25 trillion) special budget plan the DPP and Lai administration proposed in November of 2025. Approximately a quarter of the budget proposal will go to domestic procurement and indigenous production capabilities, with the remaining 76% going to purchases of United States weapons systems.  

MND Issues Seven Major Contract Awards to AIT 

This past week, the Ministry of National Defense awarded 7 major contracts to the American Institute in Taiwan; one Air Force award on Tuesday and six today. 

According to information published yesterday on Taiwan’s government e-procurement website, the Air Force Command awarded the American Institute in Taiwan (AIT) a NT$572.60 million (US$18.19 million) contract for “other support services,” with Liberty Times reporting a performance period of five years. On Wednesday, the Army Command awarded contracts for “Missile combat reserve replenishment,” “Long-range precision strike systems,” and “Self-propelled artillery”, for various amounts noted below. The Naval Command awarded a contract for “Anti-armor missiles.” The Armaments Bureau’s Production and Manufacturing Center awarded a contract for the “Co-production of large-caliber ammunition.” These awards come as the fate of the special budget, funding from which would likely pay for these tranches, remains undecided as Legislative Yuan leaders debate the scope of approved spending. 

Weekly Awards/Solicitations  

On Thursday, the Naval Command awarded RH Marine a NT$33.32 million (US$1.06 million) contract for 11 items, including oscillators. RH Marine is a Dutch company that designs and integrates advanced electrical and automation systems for both civilian and military naval vessels. The contract is to be fulfilled throughout the southern region of Taiwan. 

On Friday, the Army Command awarded seven companies a NT$1.80 billion (US$57.27 million) contract for frozen meat products. The contract is to be fulfilled nationwide. 

Also on Friday, the Army Logistics Command awarded a NT$339.11 million (US$10.77 million) contract to NCSIST for the outsourced maintenance of the Army’s “Phase II Mobile Digital Microwave System” for FY2026–2030. The contract is to be fulfilled in the Zhongli District of Taoyuan. 

On Tuesday, the Air Force Command awarded American Institute in Taiwan a NT$572.60 million (US$18.19 million) contract for “other support services”. 

Also on Tuesday, the Armaments Bureau made a repeat solicitation of bids for the purchase of engineering services for dry dock construction, as part of the Weihai project. The solicitation is valued at NT$6.10 billion (US$193.50 million). 

On Wednesday, several awards were announced: 

• The Army Command awarded the American Institute in Taiwan a NT$5.32 billion (US$168.98 million) contract for “Missile combat reserve replenishment”. The contract is to be fulfilled in Taichung (Houli and Daya Districts), Kaohsiung (Alian District), Pingtung (Wanluan Township) and Hualien (Hualien County). 

• The Army Command awarded the American Institute in Taiwan a NT$123.50 billion (US$3.92 billion) contract for “Long-range precision strike systems”. The contract is to be fulfilled in Taoyuan (Zhongli District), Taichung (New Community), Tainan (Guanmiao District) and Kaohsiung (Qishan District). 

• The Army Command awarded the American Institute in Taiwan a NT$73.89 billion (US$2.35 billion) contract for “Self-propelled artillery”. The contract is to be fulfilled in Taoyuan (Zhongli and Pingzhen Districts) and Tainan (Guanmiao District). 

• The Naval Command awarded the American Institute in Taiwan a NT$5.13 billion (US$162.75 million) contract for “Anti-armor missiles”. The contract is to be fulfilled in Taoyuan’s Guishan District and Kaohsiung’s Linyuan District. 

• The Armaments Bureau’s Production and Manufacturing Center awarded the American Institute in Taiwan a NT$910.45 million (US$28.91 million) contract for the “Co-production of large-caliber ammunition”. The contract is to be fulfilled in the Zhongshan and Nagang Districts of Taipei. 

• The General Staff awarded the American Institute in Taiwan a NT$22.88 million (US$0.73 million) contract for “Integrated air defense services”. Integrated air defense services likely refers to Taiwan’s air and missile defense system, the T-Dome. The contract is to be fulfilled in the Zhongshan district of Taipei. 

Authors: Joe O’Connor, Shikhar Chaturvedi, Danielle Kremer, and Wyeth Lindberg 

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This week: special budget negotiations continued to stall without consensus, the ROCN awarded another maintenance contract to a French company; NCSIST leaked the range of its Strong Bow missile system, as well as upgrades to M60A3 main battle tanks; and former U.S. military officers observed an annual civil defense drill in Taiwan, alongside weekly awards and solicitations. 

Special Budget Negotiations Continue to Stall 

On Thursday, scheduled negotiations on the special defense budget in the Legislative Yuan stalled as Kuomintang legislators were not present, having asked DPP convener Chen Kuan-ting to postpone any hearings on the budget until chairwoman Cheng Li-wun returned from her trip to the PRC, which she did on Saturday. This led to condemnation by DPP officials, who accused the KMT of obstructing legislative business. 

A DPP press conference on Tuesday confirmed that cross-party negotiations would be held today and convened by Legislative Yuan President Han Kuo-yu. Per CNA and Military News Agency, those negotiations also resulted in no consensus, but legislators from all three LY caucuses attended. Reportedly, convener Chen Kuan-ting will organize a special report from the MND on procurement issues on Monday, April 20, and additional negotiations will continue thereafter.  

ROCN Signs Second Deal for Continuing Naval Support 

On Thursday, the Republic of China Navy (ROCN) awarded Defense Conseil International (DCI) as NT$1.98 billion (US$62.26 million) contract for repairable parts and servicing as they begin upgrading their fleet of six Kang Ding-class frigates. This contract comes two weeks after the Navy signed a NT$1.81 billion (US$56.73 million) deal with DCI for technical support of the frigates. DCI, which is France’s state-owned military export agency has received awards for these due to the frigates’ systems having French patents. Both contracts are to run for 5 years and 6 months, with an expected completion date of 2031. 

NCSIST Leaks Range of Strong Bow Missile, M60 Tank Upgrades 

The website of the National Chung-Shan Institute of Science and Technology (NCSIST) and an industry presentation revealed new details about two Taiwanese defense programs. On April 10, Liberty Times reported that NCSIST had updated its website to include the M60A3 main battle tank upgrade program, describing a package that replaces legacy components with digital fire control, all-electric gun control, and high-resolution sights. The report also said the first upgraded vehicle is undergoing system tests and is scheduled for a live-fire operational evaluation on May 19. Separately, NCSIST’s official product page now publicly describes the M60A3 upgrade as intended to improve firing accuracy, shorten engagement time, and mitigate obsolescence issues, underscoring Taipei’s continued effort to extract more utility from legacy armor while it pursues broader force modernization. 

A second Liberty Times report suggested the range of the new Strong Bow missile may have been inadvertently disclosed during an earnings presentation by Taiwanese microwave component firm Allis. According to the report, the company described Sky Bow IV/Strong Bow as having a 1,500-kilometer range, a speed of more than Mach 10, and a 70-kilometer intercept altitude, while also noting that NCSIST has publicly described the system as part of a layered missile defense architecture with an AESA radar and tactical center vehicle. Because the reported range figure came from an industry presentation rather than a formal Ministry of National Defense (or NCSIST specification sheet), it should be treated cautiously. Still, if accurate, the disclosure offers insight into the scale of Taiwan’s T-Dome defense ambitions and the indigenous programs tied to the proposed special budget. 

U.S., Allied Former Officers Attend Annual Civil Defense Drill 

From April 11–13th, the Fuhe Association held a joint civil defense training exercise in Nantou, Taiwan. This training was attended by multiple retired generals from Taiwan’s allies, including the United States, Japan, the Republic of Korea, and the Philippines. These retired generals closely observed the civilian training activities, while exchanging anecdotes and discussing the comparative systems of compulsory military service. Many of them found the enthusiasm from the Taiwanese people impressive, with retired U.S. Navy Rear Admiral Montgomery saying that more Taiwanese citizens should regularly participate in public service. He noted that Taiwan should strengthen its reserve forces to better integrate military and civilian resources, arguing that this would strengthen Taiwan’s ability to respond to both military threats and natural disasters. However, he added that this integration requires significant effort from both the government and its people. 

Weekly Awards/Solicitations  

On Thursday, several bid solicitations were made: 

• The Armaments Bureau solicited separate bids for the purchase of engineering services for dry dock construction, as part of the Weihai project. The Wehai Project is the MND’s years-long project to renovate and upgrade Zuoying Naval Base. The solicitation is valued at NT$6.10 billion (US$192.02 million). 

• The Naval Command made a repeat solicitation of bids for the procurement and installation of equipment and facilities for nuclear, biological, and chemical (NBC) warfare protection training. The solicitation is valued at NT$1.51 billion (US$47.63 million). 

Also on Thursday, the Naval Command awarded Defense Conseil International a NT$1.98 billion (US$62.26 million) contract for repairable parts and their servicing. The contract is to be fulfilled throughout the southern region of Taiwan. 

On Friday, the Army Command solicited bids for the purchase of broadband radios, worth NT$9.61 billion (US$302.85 million). 

On Monday, the Information and Communications Command made a repeat solicitation of bids for the hardware and software required for virtual workspaces. The solicitation is worth NT$2.30 billion (US$72.96 million). 

On Tuesday, the Naval Command’s military mission to the United States solicited bids for the purchase of sonobuoys, worth NT$389.63 million (US$12.33 million). 

U.S. Contracts 

Today, the U.S. Air Force awarded a US$234.76 million undefinitized contract action to Raytheon for production of Advanced Medium-Range Air-to-Air Missile (AMRAAM) Extended Range (ER) missiles. This contract uses Taiwan FMS funds alongside 5 other countries in the total amount of US$61.57 million. Work is expected to be completed by April 2030. 

The Air Force also awarded a US$13.72 million contract to Chromalloy Gas Turbine, LLC, for the re-manufacture of F-100-PW-220 engine stators and shrouds. This contract involves FMS sales to Taiwan alongside 14 other countries, and represents components for F-16 Fighting Falcon fighter jets. Work is expected to be completed by April 2027. 

Author: Joe O’Connor, Shikhar Chaturvedi, Danielle Kremer, and Wyeth Lindberg 

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This week: the special budget remained frozen as the Kuomintang’s chairwoman visits the PRC; the U.S. House introduced a bill on Taiwan’s undersea cable resilience; two congressional delegations arrived in Taiwan for visits with officials; and NCSIST announced a plan to test low-cost ammunition prototypes, alongside weekly awards and solicitations. 

Special Budget Frozen as KMT Chairwoman Visits PRC 

Progress on special budget negotiations continued to be frozen this week, as KMT Chairwoman Cheng Li-wun began leading a delegation to the PRC. On April 2, the Legislative Yuan’s Foreign Affairs and National Defense Committee convener, DPP legislator Chen Kuan-ting, reported that KMT members had requested negotiations be delayed until April 15-16. Chen, who had already delayed negotiations until April 9, stated that the DPP caucus does not intend to change its current schedule and will continue with negotiations on the planned date.  

DPP legislators criticized KMT counterparts upon hearing of this, with one member, Lin Chu-yin, accusing them of deliberately waiting until after Cheng’s visit and accusing them of trying to delay. Chen, however, attempted to appeal to younger KMT members, who have generally been more supportive of the Lai administration’s proposal than some of their other party members. As of the time of writing, it is assumed that negotiations will continue Thursday. 

U.S. House Introduces Bill on Taiwan’s Cable Resilience  

 
On April 2, U.S. Representatives Mike Lawler (R-NY), Dave Min (D-CA), and Greg Stanton (D-AZ) introduced the House version of the Critical Undersea Infrastructure Resilience Initiative Act. Designed to address many of the concerns in the South China Sea, this bill prioritizes establishing advanced monitoring to detect disruptions in real time, strengthening early warning through global intelligence sharing, establishing rapid-response protocols, and expanding coordination to boost resilience. The legislation would also support joint patrols with the U.S. and Taiwanese Coast Guard in the area, as well as the creation of a Cross-Strait Contingency Planning Group to identify vulnerabilities and develop contingency plans. The bill would require the U.S. to pressure China to follow international norms and impose sanctions on those responsible for sabotaging critical undersea systems affecting Taiwan and allies. It is currently in its second stage, waiting to be passed by the United States Senate.  

Two U.S. Congressional Delegations Visit Taiwan, Meet with Lai 

Following a bipartisan congressional delegation that visited Taiwan at the end of March, two more U.S. legislative delegations arrived in Taiwan this week to meet with government officials. A group of four House members from the Republican Study Committee, consisting of Reps. Zach Nunn (R-IA), Scott Fitzgerald (R-WI), Julie Fedorchak (R-ND), and Jefferson Shreve (R-IN), arrived in Taipei on Sunday, April 5, and are expected to remain until Saturday, April 11. On Tuesday, the delegation attended a Taiwan-U.S. forum on economics and trade, alongside Maryland Secretary of State Susan C. Lee, where the representatives discussed tariffs, trade policy, and investment. On Tuesday, the delegation also met President Lai, who they presented with a congressional record of recognition; and met Minister of National Defense Wellington Koo at MND headquarters, discussing “gray-zone” issues with Taiwan. 

A separate, simultaneous visit by U.S. Senator Jim Banks (R-IN), also began Tuesday, where the lawmaker met with President Lai, Legislative Yuan President Han Kuo-yu, and Minister of National Defense Wellington Koo. Banks’ meeting with Lai centered around support for Taiwan and ongoing special budget negotiations, with the senator expressing hope that a budget will be passed soon and comparing Taiwan’s special spending to President Trump’s plans for a US$1.5 trillion defense budget. At the LY, Banks met with President Han Kuo-yu, as well as members from all three political parties in the legislature, and further discussed ways to build consensus in passing the special defense budget. A later meeting with Minister of National Defense Wellington Koo at MND headquarters also reinforced this point, also discussing the U.S. congressional notification procedure for arms sales. In the evening, Banks’ delegation attended a banquet at the Ministry of Foreign Affairs, hosted by Deputy Minister Chen Ming-chi, where the delegation reiterated earlier remarks made, and noted that this visit corresponds with the 47^th anniversary of the Taiwan Relations Act, marking an auspicious moment for U.S.-Taiwan affairs. 

NCSIST Announces Plan to Test Low-Cost Munitions 

According to Liberty Times, the National Chung-Shan Institute of Science and Technology (NCSIST) has developed several types of “low-cost air defense munitions.” One type is made to counter drone swarm attacks, and a second one is designed to defend against enemy missiles and long-range rocket attacks. So far, there has been no further information has been provided on either of the munitions.  Both are said to start planned combat testing later in the first half of next year. In addition to the two independently developed defense munitions, NCSIST has signed a contract with a Canadian manufacturer, AirShare, to develop “ribbon rocket systems.” These systems use ribbons that catch enemy drones’ propellers, causing them to lose flight capability, then use a parachute to slow the drone’s descent. The parachute reduces impact damage, specifically so the drone can be recovered intact for reverse engineering. This defense munition is also said to begin testing in the first half of next year. 

Weekly Awards/Solicitations  

On Thursday, the Armaments Bureau solicited bids for the purchase of road and electrical/mechanical engineering services in support of the Weihai project. The Wehai Project refers to the MND’s years-long project to renovate and upgrade Zuoying Naval Base. The contract is worth NT$5.30 billion (US$165.98 million). 

Also on Thursday, the Army Command made a repeat solicitation of bids for official staff vehicles, worth NT$203.32 million (US$6.37 million). 

On Wednesday, the Air Force Command’s Military Mission to the United States awarded a NT$88.76 million (US$2.79 million) contract to Integrated Procurement Technologies for the open-ended supply of aviation spare parts. Available evidence suggests that this contractor is providing spare parts for the F-CK-1 Ching-Kuo (otherwise known as the Indigenous Defense Fighter or IDF). 

Author: Joe O’Connor, Shikhar Chaturvedi, Danielle Kremer, and Wyeth Lindberg

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This week: the MND received a payment extension for the sale of HIMARS, a U.S. congressional delegation visited Taiwan to support ongoing budget negotiations, the ROCN signed a major upgrade contract with a French firm, and two Taiwan-related defense bills were introduced in the U.S. Senate, alongside weekly awards and solicitations.

MND Seeks, Receives Payment Extension for HIMARS

Taiwan’s Ministry of National Defense said this week that the United States has agreed to defer the first payment deadline for 82 HIMARS launchers, giving Taipei temporary relief as the Legislative Yuan continues to debate the Lai administration’s NT$1.25 trillion special defense budget. According to Defense Minister Wellington Koo and MND officials, the HIMARS payment can now be pushed to around May, when Washington expects to complete contract negotiations with the supplier (Lockheed Martin), rather than the original March 30 deadline. Taiwan had already secured legislative authorization on March 13 to sign Letters of Offer and Acceptance for four U.S. arms sales packages worth roughly US$9 billion, but still lacked appropriated funds for the required down payments.

The HIMARS case nevertheless underscores how legislative delays are now affecting backlog management. Liberty Times reported on March 26 that MND officials had warned missing the HIMARS payment window could force Taiwan to wait until the end of the year for another contracting opportunity, and CNA now reports that MND is still trying to secure similar payment extensions for three additional systems: TOW missiles, Javelins, and M109A7 self-propelled howitzers. Together, the four initial payments total about US$79 million. For now, Taiwan has avoided a near-term disruption on HIMARS, but the episode shows how domestic budget gridlock can still complicate contracting timelines and add friction to efforts of moving delayed U.S. arms cases through the pipeline.

U.S. Senate Delegation Visits Taiwan, Meets Lai, LY

On Monday and Tuesday, a delegation of four U.S. Senators, led by Ranking Member of the Senate Foreign Relations Committee Jeanne Shaheen (D-NH), visited Taiwan on one leg of a trip around the Indo-Pacific. Shaheen, accompanied by Sens. Thom Tillis (R-NC), John Curtis (R-UT), and Jacky Rosen (D-NV), met with President Lai Ching-te and Minister of Foreign Affairs Lin Chia-lung, reaffirming support for Taiwan’s defense and relations with the U.S. Before arriving, Sen. Curtis told the Financial Times that the visit’s timing was linked to efforts in Taiwan’s Legislative Yuan to pass a special defense budget, which has largely stalled in negotiations.

On Monday, the delegation also visited the National Chung-Shan Institute of Science and Technology (NCSIST), Taiwan’s state-owned indigenous defense manufacturer, and viewed results of live-fire testing of the Mighty Hornet IV, a new attack drone jointly produced by NCSIST and US company Kratos that is a variant of the MQM-178 Firejet target drone.

On Tuesday, the delegation met with a bipartisan group of DPP and KMT Legislative Yuan members in a closed-door evening session. Per legislators Niu Hsu-ting (KMT) and Chen Kuan-ting (DPP), the delegations discussed ongoing arms procurement between the United States and Taiwan, as well as the current legislative process for the special defense budgets and how to build consensus among all parties. After this, the delegation departed Taipei, enroute to Japan.

ROCN Signs NT$1.81 Billion Contract for Naval Upgrades

On Tuesday, the Republic of China Navy (ROCN) signed a deal with Defense Conseil International (DCI) worth NT$1.81 billion (US$56.73 million) for technical support services as it begins upgrading its fleet of six Kang Ding-class frigates. DCI is France’s state-owned operator for the exporting of military assistance to international partners, under the Ministry for the Armed Forces. Since the Kang Ding-class frigates are export models of France’s own La Fayette-class frigates, their structural designs and parameters are protected by French patents.

Modifications include the installation of BAE Systems’ Type 997 Artisan radar and Safran S.A.’s PASEO NS electro-optical fire control system, as well as installation of the indigenously produced Hua Yang vertical launch system (VLS), equipped with 32 TC-2N (Tien Chien II or Sky Sword II) air-to-air missiles, to replace older U.S. naval Sea Chaparral surface-to-air missiles. With the first upgraded ship being completed in February of this year, the contract will run for 5 years and 6 months and is expected to be completed by the end of 2031. This contract will ensure effective integration of Taiwan’s domestically developed weapons with foreign-built platforms, avoiding any impact on ships’ operational or stealth performance.

U.S. Senate Introduces Two New Bills on Taiwan

On Thursday, Senators Michael Bennet (D-CO) and Pete Ricketts (R-NE) introduced the First Island Chain Deterrence Act, a measure requiring the U.S. Government Accountability Office (GAO) to issue a report to Congress on the status of major arms sales and if there are any delays affecting Japan, Taiwan, and the Philippines. The same report would assess the impacts of such delays, their effects on readiness in the region, and would be due within 18 months of the bill becoming law.

Today, Senators Jeff Merkley (D-OR), Ted Cruz (R-TX), Andy Kim (D-NJ), and John Curtis (R-UT), introduced the Blue Skies for Taiwan Act, which aims to support Taiwan’s indigenous drone production industry. The measure specifically would establish a “Blue UAS Working Group,” which would assess Taiwanese industry and begin adding Taiwanese systems to the DOD’s secure “Blue UAS” program, ensuring capabilities and components are “PRC-independent.” The bill, if passed, also directs the Pentagon and State Department to begin expedited certification processes for Taiwanese drone manufacturers.  

Weekly Awards/Solicitations

On Thursday, the Naval Command made a repeat solicitation of bids for transport trucks, worth NT$1.35 billion (US$42.13 million).

On Friday, the Military Medical Bureau solicited bids for the construction of the Radiation Oncology and Nuclear Medicine Center, worth NT$216.39 million (US$6.77 million).

On Tuesday, the Naval Command awarded Defense Conseil International a NT$1.81 billion (US$56.73 million) contract for naval technical support services. DCI is France’s Ministry for the Armed Forces operator for the exporting of military assistance to international partners. The contract is to be fulfilled throughout the southern region of Taiwan.

On Wednesday, the Information and Communications Command made a repeat solicitation of bids for the licensing of cloud information services, worth NT$36.03 billion (US$1.13 billion).

Also on Wednesday, the Armaments Bureau’s Production and Manufacturing Center, made a repeat solicitation of bids for night-vision detection equipment, worth NT$38.89 million (US$1.22 million).

Authors: Joe O’Connor, Shikhar Chaturvedi, Danielle Kremer, & Wyeth Lindberg

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This week: the LY agreed to approve signature for four arms sales; MND officials provided updates on MQ-9B and PAC-3 procurement alongside low-cost air defense technology; a U.S. House hearing shed light on arms sales to Taiwan; and the MND confirmed the receipt of ALTIUS 600M drones, alongside weekly awards and solicitations.

Legislative Yuan Agrees to Approve LOA Signature

On Thursday, the Legislative Yuan’s Foreign Affairs and National Defense Committee agreed to allow Letters of Offer and Acceptance (LOAs) to be signed for four U.S. arms sale cases, three of which (Paladin self-propelled howitzers, TOW-2B, and Javelin anti-armor missiles), were set to expire on March 15. A fourth LOA for High Mobility Artillery Rocket Systems (HIMARS), received earlier last week with an expiry date of March 26, is also included in this agreement. The committee required that upon signing, however, the MND must immediately report delivery schedules to the LY and continue to engage in the ongoing legislative review process.

On March 18, DPP legislator Kuan-ting Chen stated to the press that the LY committee would schedule reviews of all three special defense budget proposals next week. Per Chen, the committee will have a Q&A session on March 23 (Monday) and undergo a clause-by-clause review on March 25-26 (Wednesday-Thursday). When asked, Chen also indicated he’d prioritize the Lai administration’s proposal, but aspects are open to negotiation and discussion.

LY Hearing Provides Updates on MQ-9B, PAC-3

On Monday, the LY’s Foreign Affairs and National Defense Committee then held a hearing on the status of Taiwan’s air defense network amid conflict in the Middle East. ROCAF Chief of Staff, Lieutenant General Lee Ching-jan, stated that the first two MQ-9B SeaGuardian maritime surveillance drones will be delivered to Taiwan by the third quarter of this year. MND officials also reiterated that the ongoing delivery of 102 PAC-3 Missile Segment Enhancement (MSE) missiles should not be affected by conflict in the Middle East, a concern that was also expressed about MQ-9B delays.

Details on Taiwan Arms Sales from U.S. House Hearing

During a March 17 House Foreign Affairs Committee hearing on “Reforming America’s Defense Sales,” U.S. officials reaffirmed that security assistance for Taiwan remains the administration’s “top priority.” Defense Security Cooperation Agency (DSCA) Director Michael F. Miller testified that his 2023 guidance prioritizing Taiwan over all other requirements remains active, specifically ensuring that if a “competition” for production capacity arises, Taiwan will maintain priority for deliveries like the Harpoon Coastal Defense Systems over other buyers such as Saudi Arabia. This emphasis follows the notification of a record US$11.1 billion arms package in December 2025, which includes HIMARS rocket systems, howitzers, and ALTIUS loitering munition drones designed to rapidly build asymmetric warfare advantages. While witnesses at the hearing addressed a US$21 billion backlog of undelivered weapons, TSM identifies the total value at US$32 billion in a recent February Arms Sales Backlog Update, noting that roughly 20% (US$6.26 billion) represents cases like the M1A2T Abrams tanks and Harpoons that are currently in partial delivery.

The hearing also clarified the diplomatic and legislative frameworks governing these sales amidst concerns over President Trump’s recent summit diplomacy with Xi Jinping. Despite the President’s suggestions that future packages might be discussed with Beijing, witnesses from both the State and Defense Departments stated they were unaware of any changes to the Six Assurances or longstanding U.S. policy. To address delivery bottlenecks, the committee discussed the “Porcupine Act”, which would categorize Taiwan as a “NATO plus” partner to raise notification thresholds, following the House passing a 2026 funding bill that includes US$2.3 billion in Foreign Military Financing (FMF) grants and loans. However, TSM analysis indicates that the strategic impact of these reforms is increasingly threatened by political gridlock in Taiwan’s Legislative Yuan, where delays in passing the NT$1.25 trillion special budget have left several Letters of Offer and Acceptance (LOAs) for asymmetric systems at risk of expiration. Despite these internal delays, physical deliveries of higher-end platforms continue, with the final batch of 28 M1A2T Abrams tanks currently “at sea” and expected to reach Taiwan by the end of March 2026.

MND Confirms ALTIUS 600s Delivered

According to a recent report from the Ministry of National Defense, as of March 18, the Taiwanese military has officially received all 600M ALTIUS UAVs purchased from the United States and defense contractor Anduril. These drones are said to have a range of up to 40km, along with anti-armor warheads and infrared detection capabilities. With this last delivery, the Taiwanese military now has up to 291 ALTIUS systems, costing approximately NT$9.6 billion (US$300 million). A second sale, announced in December, of 1,554 ALTIUS 700M and 478 ALTIUS 600M ISR drones, is currently in progress, but it is expected will be completed quickly owing to the speed of the first case, having only taken 14 months between notification and delivery.

Weekly Awards/Solicitations

On Thursday, the Army Logistics Command’s Army Ordnance Maintenance and Development Center awarded the 209th Factory a NT$800.00 million (US$25.14 million) contract for CM-32/33 APC maintenance kits. The contract is to be fulfilled in Jiji Township, Nantou County.

Also on Thursday, the Armaments Bureau awarded a NT$2.82 billion (US$88.52 million) contract to Pan Asia Engineering Construction Co., Ltd for the Hanyang Camp new construction project. The contract is to be fulfilled in Taoyuan City.

On Friday, the Army Command’s Military Mission to the United States awarded the American Institute in Taiwan a NT$67.59 million (US$2.12 million) contract for flares. While this award is to the AIT, it is likely for a U.S. defense contractor. The contract is to be fulfilled in the Rende District of Tainan and Pingtung City in Pingtung.

Also on Friday, the Armaments Bureau’s Production and Manufacturing Center made a repeat solicitation of bids for Night-vision detection equipment, worth NT$38.89 million (US$1.22 million).

On Monday, the Naval Command solicited bids for the purchase of new Hong Kong tugboats, worth NT$807.57 million (US$ 25.35 million).

On Wednesday, the Naval Command solicited bids for the procurement and installation of NBC protection training ground facilities, worth NT$1.51 billion (US$ 47.47 million).

U.S. Contracts Relating to Taiwan

On Tuesday, the Defense Logistics Agency awarded a US$470 million (NT$14.99 billion) contract to Pratt & Whitney, a division of RTX Corp., for the re-manufacturing of F100 engine modules. This contract uses Taiwan FMS funds alongside 12 other countries. F100 engines are used by F-16 Fighting Falcon fighter jets, as well as F-15s. Work is expected to be completed by March 2029.