Author: Joseph O'Connor

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

This week: the Ministry of National Defense warns that some sales are in peril due to budgetary constraints; the Navy’s Hai Kun indigenous submarine finishes testing; the Air Force announces a plan to buy upgraded C-130H Hercules; and the MND announces additional PAC-3 MSE missiles on the way to Taiwan, alongside weekly awards and solicitations.

MND Announces LOA Extensions for Missiles, Paladins

On Friday, the MND announced that they would be seeking extensions to Letters of Offer and Acceptance (LOAs) for several arms sales announced in December, including TOW and Javelin anti-tank missiles, and Paladin self-propelled howitzers. LOAs are a critical first step in the Foreign Military Sales implementation process that sets out payment schedules and delivery timelines for items, and if not signed by March 15, the above cases would be subject to cancellation or renegotiation. Per the MND, the LOAs have not been signe,d and initial payments have not been made owing to ongoing battles in the Legislative Yuan over the special defense budget, including dueling proposals worth NT$1.25 trillion that the MND requested, and one worth NT$400 billion advanced by the opposition.

Hai Kun Submarine Continues Testing Exercises

With Taiwan’s indigenously produced Hai Kun submarine conducting its most recent underwater test of flare and decoy deployment, the first phase of the program’s testing has officially come to a successful end. These tests off the coast of Kaohsiung included deep water dives with the submarine reaching 150 meters, and shallow water tests to verify the submarine’s stability and watertightness. The second phase of testing, its timing having not been announced, will consist of sonar, combat system, and maneuver-torpedo tests. Taiwanese military and political officials plan to use this new phase to verify the reliability of the Hai Kun.

ROCAF Announces Plan to Buy Upgraded C-130Hs

Taiwan’s Air Force has essentially abandoned its mid‑life “Taiwushan III” plan to upgrade all 20 C‑130H airlifters, moving instead to buying 10 new C-130J “Super Hercules,” after U.S. cost estimates ballooned from around NT$100 billion for cockpit and avionics upgrades to more than NT$250 billion once FAA certification and structural reinforcements were included.  According to Central News Agency reporting, the cancelled program aimed to integrate digital flight displays, improve maritime search‑and‑rescue systems and add simulators, but senior officers said software costs and airframe reinforcement made the investment uneconomical. Under the new plan, the Air Force will pursue a “high–low mix”: the advanced C‑130J, with more powerful engines, six‑bladed propellers and a fully digital cockpit, will handle demanding missions like nighttime and austere operations, while the remaining C‑130Hs will get domestic upgrades and support routine transport tasks.

Additional PAC-3 MSE Missiles Confirmed by MND

On Wednesday, MND sources confirmed that Taiwan is receiving 102 PAC-3 Missile Segment Enhancement (MSE) missiles for Patriot air defense systems, to be paid using surplus funds from a Patriot procurement program. This sale appears in our Arms Sales Backlog as a 2022 plus-up (modification) from a 2010 sale of Patriot systems to Taiwan, and includes the addition of 1-2 missiles, likely for testing. This tranche of PAC-3 MSEs is in addition to a planned, but not officially notified, future sale of Patriot batteries and PAC-3s that will be paid using the special defense budget.

Weekly Awards/Solicitations

Last Thursday, the All-Out Defense Mobilization Agency awarded Xinshifu Co., Ltd and Shencai Fashion Industry Co., Ltd a NT$142.85 million (US$4.53 million) contract for digital camouflage-patterned tents. The contract will be fulfilled nationwide.

On Monday, the Armaments Bureau solicited bids for combat battle vests, worth NT$868.40 million (US$27.70 million).

On Tuesday, the Naval Command awarded a NT$195.00 million (US$6.22 million) contract to the American Institute in Taiwan for the assessment of the use of underwater technology. The contract will be fulfilled in Taipei’s Zhongshan District and Taoyuan’s Longtan District, respectively.

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

This week: MND announces that NASAMS will be deployed to current SHORAD units, a status update on last Abrams tank deliveries emerged, the MND released a policy document with details about naval, wheeled vehicle, and missile procurement, and the Air Force expressed interest in buying new early warning aircraft, alongside weekly awards and solicitations.

NASAMS To Be Given to Antelope, 20mm AD Units

As part of Taiwan’s ongoing air defense modernization, the MND announced this week that US-sold National Advanced Surface-to-Air Missile System (NASAMS) medium-range air defense batteries will replace Antelope and 20-mm short-range capabilities currently used by air-defense units. Per our Taiwan Arms Sales Backlog, this case remains in progress since its notification in November 2024, though a recent US$698.95 million (NT$21.8 billion) U.S. Army production contract awarded to Raytheon for the first three NASAMS fire units signals the beginning of the manufacturing phase, with completion expected by 2031.

Last Tranche of Abrams Tanks to Arrive by March

Taiwan’s MND reported that it would receive its final batch of 28 M1A2T Abrams tanks by March of this year, confirming an MND report to the LY submitted in May 2025. This will be the third batch of Abrams, originally approved in July 2019 sent from the United States to the Taiwanese Army. The first batch of 38 tanks arrived in December 2024, being commissioned in October 2025; and the second batch, sent in July 2025, is still awaiting commissioning; totaling 108 tanks. The sale, which remains backlogged until delivery is confirmed, is worth $1.28 billion USD (NT$40.52 billion).

MND Releases Procurement Policy Document

On Friday, the MND released their “List of Regulated Military Products for the Second Half of 2025,” a policy document outlining controlled procurement items and timelines for future projects, including naval vessels, wheeled vehicles, and indigenous missile programs.

Most importantly, the Navy listed plans to procure several classes of vessels, including five next-generation light anti-air frigates, five light anti-submarine frigates, two rescue ships, one submarine rescue ship, one new Yushan-class dock landing ship, and one oil/ammunition replenishment ship. These projects have a total estimated cost of NT$315 billion (US$9.97 billion) and are expected to be built between 2027 and 2040.

The MND also announced plans to produce 500 additional Clouded Leopard infantry fighting vehicle variants equipped with 105mm cannons, alongside 468 “reconnaissance and tactical wheeled vehicles,” beginning in 2028. Lastly, the list announced plans to procure 2 launchers and 128 missiles for the Strong Bow anti-ballistic missile defense system, still under development and part of the proposed “T-Dome” air defense system.

Air Force Briefed by L3Harris on AEW Aircraft Buy

Per UpMedia, the Air Force Command recently received a briefing from American defense contractor L3Harris on options for commercial procurement of early-warning aircraft. This comes after repeated requests for procurement of E-2D Hawkeye aircraft and MH-60R Black Hawk anti-submarine helicopters were blocked by the United States, and the Air Force’s desire to upgrade aging early warning airframes. L3Harris is the primary manufacturer of the EA-37B Compass Call aircraft, a modified Gulfstream G550 business jet that has recently been commercially sold to other US allies, including Italy.

Weekly Awards/Solicitations

Last Thursday, the Naval Command awarded Van Halteren Technologies a NT$756.06 million (US$23.89 million) open-ended contract for naval “drive and control” spare parts. The contract will be fulfilled throughout the southern region of Taiwan, including Kaohsiung.

Also on Thursday, the Air Force Command awarded a NT$589.83 million (US$18.64 million) contract to Rheinmetall Italia SPA for maintenance of aircraft training simulator systems. This contract is to be fulfilled throughout the southern region of Taiwan.

On Friday, the Naval Command’s Magong Logistics Support Command made a repeat bid solicitation for the renovation of Magong Naval Base’s mobilization depot, worth NT$49.00 million (US$1.55 million).

On Monday, the Army Logistics Command solicited bids for rifle magazine bags, worth NT$32.48 million (US$1.03 million).

On Wednesday, the Air Force Command solicited bids for a high-voltage power supply renovation turnkey project at Tainan Air Base, part of Tainan Airport, worth NT$402.67 million (US$12.75 million).

Author:Joe O’Connor

This week: US and Taiwanese companies partner on drones, a former ROCA commander reveals details about the sale of Abrams tanks to Taiwan, the TPP issues their own special budget proposal, the Navy prepares dive tests on its Hai Kun submarine, alongside weekly awards and solicitations.

Taiwanese GTOC and US Companies Partner on Drones

On Friday, Taiwanese company G-Tech Optoelectronics Corp. (GTOC) and US companies Aerkomm and Firestorm Labs signed strategic partnerships to establish a military-grade drone industrial chain in Taiwan. GTOC Chairman Huang Kun-chien stated at the event that the Ukraine conflict has changed thinking on drone usage, and that supply chain resilience is critical. Firestone Labs was founded just before the Ukraine war as an innovator, while Aerkomm brings significant aerospace and satellite communications to the partnership. As a part of the strategic partnership, the three companies will embark on “decentralized production [and] localized support” models to produce drones.

Ex-Army Commander Reveals Abrams Sale Expedited

Former Army Deputy Commander Lt. Gen. Huang Kuo-ming told Liberty Times this week that the sale of M1 Abrams tanks to Taiwan was actually directly negotiated with the American Institute in Taiwan (AIT), the United States’ de facto embassy, bypassing the Ministry of National Defense’s normal procedures. Huang stated that the MND was focusing on air and naval capabilities, while the Army urgently needed new tanks. Huang proposed that the Army go directly to the AIT and received permission from the Army’s then-commander. When the AIT was receptive to the idea of the sale, Gen. Huang then sent then-Col. Huang Wen-chi to the US to brief US officials on the sale. According to Gen. Huang, the MND was surprised when the sale was announced to hear that the Army had already been in discussions with the US on its own.

TPP Issues Special Budget Proposal, Cuts to NT$400 Billion

On Monday, the Taiwan People’s Party (TPP), an opposition party in the Legislative Yuan, released its proposal for a special defense budget, reducing the budget ceiling from NT$1.25 trillion (US$40 billion) to NT$400 billion (US$12.74 billion) and mandating additional oversight. On Tuesday, the MND held its own press conference in opposition to the TPP’s proposal, criticizing it as hasty and unprofessional, and providing clarification. Director of the MND Strategic Planning and Operations Department, Maj. Gen. Huang Wen-chi, provided background on project development and the Five-Year Force Structure Plan, stating that the TPP’s proposal would not allow for revision of project documents within an appropriate timeline, and that additional oversight is not required as each project must undergo audits by the MND’s Audit Department alongside LY oversight.

Navy’s Hai Kun Submarine Undergoes Dive Tests

On Wednesday, CSBC announced that the Navy’s Hai Kun indigenous submarine will conduct its first dive trial off Kaohsiung on Thursday, 29 January. Construction on Hai Kun began in November 2020, its keel was laid in November 2021, and it last completed sea trials in June 2025. The testing program has been beset by technical problems, including hydraulic issues and a main engine failure, and has drawn criticism over cost overruns and inefficiencies. CSBC has pushed back, arguing that Hai Kun is cheaper than comparable South Korean or Australian programs and should be considered a “mid-range” submarine in terms of price.

Weekly Awards/Solicitations: Ammunition, Ship Parts

On Thursday, the Army Command awarded a NT$238.03 million (US$7.58 million) contract to Shaoteng Construction Co. for renovation of 30-mm cannon training facilities. The contract will be fulfilled in Kaohsiung City. 30-mm cannons are used on the CM34 variant of the Clouded Leopard APC.

On Friday, the Naval Command awarded a NT$1.39 billion (US$44.37 million) contract to Wartsila Taiwan, Ltd., for main engine spare parts and logistics support services for naval vessels. The contract’s fulfillment location was not stipulated.

On Monday, the Tactical Control Wing, Air Force Command awarded an NT$735.58 million (US$23.54 million) contract to NCSIST for reconnaissance radar auxiliary facility maintenance. The contract will be fulfilled in Wufeng Township, Hsinchu County. This is likely for the Air Force Surveillance and Early Warning Center, a PAVE Phased Array Warning System with a purported range of ~3,000 nautical miles.

On Wednesday, the Army Ordnance Maintenance and Development Center, Army Logistics Command awarded a NT$288 million (US$9.22 million) contract to the Armament Bureau’s 209th Factory for commercial repair and maintenance of 40-mm grenade launcher variants of the CM-32/33 Clouded Leopard APC. On the same day, the Center also awarded a NT$186 million (US$5.95 million) contract to NCSIST’s Manufacturing Center for commercial repair and maintenance of 30-mm autocannon turret systems on CM-34 Clouded Leopard APCs. Both contracts will be fulfilled at the Center’s headquarters in Jiji Township, Nantou County.

Also on Wednesday, the Armaments Bureau awarded a NT$1.07 billion (US$34.10 million) contract to Cheng Yuen International Co. and Taiwan HoYa International Co. for 7.62-mm blank cartridges and 3 other ammunition items. The contract will be fulfilled in Dashu District, Kaohsiung City.

Author: Joe O’Connor

This week: the MND announced “four more sales” not notified to the US; Minister Koo revealed the quantity of ALTIUS systems Taiwan is buying, additional news on production line enhancement emerged; and the US Congress released two appropriations bills with funding for Taiwan, alongside weekly awards and solicitations.

MND Reveals “Four More Sales” from US Soon

Per Vice Minister of National Defense Hsu Szu-chien on Thursday, at least four additional arms packages have yet to be notified to the US Congress, on top of December’s US$11 billion sale packages. Hsu did not reveal what those additional items would be, but likely four Patriot launchers and more PAC-3 MSE interceptors would be included, as MND officials had already announced.

Minister Koo Reveals Number of ALTIUS Systems from December Sale

In a closed-door LY committee briefing Monday on the NT$1.25 billion special defense budget, Minister of National Defense Wellington Koo revealed the previously undisclosed number of ALTIUS systems Taiwan would be procuring, from its December US$1.1 billion (NT$34.54 billion) package. Koo stated that 1,554 ALTIUS-700M loitering munitions and 478 ALTIUS-600 ISR UAVs would be part of that package, and that Taiwan would also be procuring around 200,000 unmanned aerial vehicles of all types and 1,000 unmanned surface vehicles.

Additional Details on Production Line Enhancement

MND officials released additional details on production line enhancement projects to be paid for under the NT$1.25 trillion special defense budget, including what factories would be focusing on. Per plans, the 202nd Factory will accelerate 155mm artillery shell production, of which only Paladin self-propelled howitzers use in Taiwan (with plans to sell surplus production). The 205th Factory will work to produce small arms ammunition, 50 million primers per year in peacetime, and up to 70 million primers during wartime. The 209th Factory will continue work on “various new armored vehicle assembly lines,” including Yunqiao “Clouded Leopard” armored personnel carriers and a next-generation 105-mm combat vehicle. Finally, the 401st Factory will accelerate efforts on production of night-vision goggles and chemical protective masks.

US State, Defense Appropriations Bills: Funds for Taiwan

On Thursday, the US House of Representatives passed a combined appropriations bill package known as a “minibus” (or “mini-omnibus”) for executive agencies, including the Department of State. This package included US$300 million in Foreign Military Financing for Taiwan, with a proviso that the Secretary of State “prioritize” delivery of defense articles to Taiwan. The appropriations bill also provided for FMF loan authority to Taiwan and prohibited funds from being spent on maps that inaccurately show Taiwan’s geographical holdings.

On Tuesday, both houses of Congress released a conference text of a second “minibus” bill, including appropriations for the Department of Defense. This bill included US$1 billion appropriated for the Taiwan Security Cooperation Initiative (TSCI), a program established in 2025 to provide defense articles, services, and training to Taiwan. This appropriation is in line with an earlier provision in the Fiscal Year 2026 National Defense Authorization Act. The bill’s conference report also directs the Secretary of Defense to submit a spend plan to Congress for that program. The bill also appropriates US$150 million for replacement of defense articles or reimbursement for services provided to Taiwan, designed to backfill depleted stocks. Line items indicate that this was requested to be $1 billion, but was reduced by appropriators.

Weekly Awards/Solicitations: Helo, IDF Sim Maintenance

On Monday, the Army Ordnance Maintenance and Development Center, Army Logistics Command awarded a NT$288.00 million (US$9.10 million) contract to the Armament Bureau’s 202nd Factory for commercial maintenance of two items: 40mm remote-controlled gun turrets (excluding sights) and armored vehicle fire suppression systems. On the same day, the Center also awarded a NT$47.85 million (US$1.51 million) contract to NCSIST’s Manufacturing Center for maintenance of short-range automated defense weapons systems. Both contracts will be fulfilled at the Center’s headquarters in Jiji Township, Nantou County.

On Tuesday, the Air Force Command awarded a NT$92.80 million (US$2.93 million) contract to Aerospace Industrial Development Corporation for maintenance of Indigenous Defense Fighter (IDF) simulators, including cockpit subsystems. This contract will be fulfilled at Ching Chuan Kang Air Base in Daya District, Taichung City; and Tainan Air Base, in South District, Tainan City.

Also, on Tuesday, the Army Command awarded a NT$1.08 billion (US$34.12 million) contract to Air Asia Co., for “strategic maintenance” of Army transport helicopters. The location of this contract’s fulfillment was not stipulated. This contract may consist of arming currently held UH-60 Black Hawk helicopters, of which plans were announced last week by MND officials.

Author: Joe O’Connor

See this week’s Taiwan Arms Tracker update, covering news relating to arms sales, indigenous production, and defense procurement in Taiwan, all below!

ROCN Contracts US Instructors for Training

On Friday, the Naval Command made a correction announcement to an earlier contract, increasing an award for the provision of US trainers and instructors to a total of NT$99.77 million (US$3.18 million). The award indicates that services will take place at the Zuoying Naval Base in Kaohsiung, indicating that amphibious joint warfare training will likely take place.

SOURCE: Chen Chih-cheng, Liberty Times

Production of Suicide USVs Planned to 1,600 Units

Military officials indicated on Saturday that plans for mass production of suicide unmanned surface vessels (USVs) have increased from 1,320 units to 1,600 and will be funded using the NT$1.25 trillion special defense budget. On December 8, the Naval Command began coordinating procurement via requests for information and is being urged to designate NCSIST as the prime contractor for development.

SOURCE: Luo Tian-bin, Liberty Times

First Taiwanese F-16 Block 70 Undergoes Flight Test

On Monday, the first Taiwanese F-16 Block 70 conducted its first flight test at Lockheed Martin’s production facility in Greenville, SC, coming after initial taxiing tests on December 20. The fan page “IDF Ching-kuo” also reported that 10 more aircraft have completed final assembly and are ready for testing.

SOURCE: Various Authors, Liberty Times

M1A2T Abrams Appear in First Combat Drill

In response to the PLA Eastern Theater Command’s “Justice Mission 2025” exercise, the Taiwanese military began their own combat readiness exercises, including the deployment of new M1A2T Abrams tanks from the 584th Armored Brigade, whose 3d Battalion is the first unit to receive the new tanks. Taiwan has received 80 of 108 Abrams from the US so far, with the final group of 28 expected early next year.

SOURCE: Chen Chih-cheng, Liberty Times

Weekly Awards & Solicitations: Helicopter Maintenance

•On Monday, the Air Force Command awarded a NT$275.15 million (US$8.80 million) contract for periodic inspection and maintenance services of rotorcraft at Chiayi Air Base, which is home to EC-225 SAR helicopters.

•Also on Monday, the Ministry of National Defense awarded a NT$126.20 million (US$4.04 million) contract for security guard services in Neihu District, Taipei, likely at MND Headquarters.

SOURCE: Taiwanese Government E-Procurement System

Author: Joe O’Connor

See this week’s Taiwan Arms Tracker update, covering news relating to arms sales, indigenous production, and defense procurement in Taiwan, all below!

US Approves Arms Sales to Taiwan Worth US$11 Billion

Last Wednesday, the US State Department and Defense Security Cooperation Agency notified Congress of eight new arms sales to Taiwan worth US$11.1 billion (NT$346.6 billion). These sales include additional HIMARS systems, M109A7 Paladin self-propelled howitzers, ALTIUS unmanned systems, Javelin and TOW missiles, and a Tactical Mission Network for Taiwan.

SOURCE: Tu Yu-Min, Liberty Times & Defense Security Cooperation Agency

First F-16 Block 70 Sighted Taxiing in US

On Saturday, a U.S. planespotter caught images of the first Taiwanese F-16 Block 70 fighter undergoing taxiing tests at its production facility in Greenville, South Carolina. The ROCAF confirmed to CNA that F-16 testing is on schedule and according to plan. On December 1, Air Force Chief of Staff Lee Ching-jan stated to the LY that 54 airframes have entered the production line so far.

SOURCE: Wu Shu-wei, CNA

Additional Paladin Purchases Planned: Announcement

Amidst recent announcements of a sale to Taiwan of 60 M109A7 Paladin self-propelled howitzers, an unnamed senior military official confirmed to Liberty Times that a second phase of 60 Paladins will be procured via Taiwan’s annual defense budget, depending upon the progress of the first tranche of Paladins. The official also stated that the first tranche of Paladins will be paid for via the proposed NT$1.25 trillion special budget.

SOURCE: Luo Tian-bin, Liberty Times

Talks Ongoing For Buy of PAC-3 MSE, 4 Patriots

“Informed sources” also confirmed to Liberty Times of ongoing Taiwanese-US talks to purchase 4 additional MIM-104 Patriot air defense systems, as well as 500 PAC-3 MSE missiles, and Integrated Battlefield Command System (IBCS) sets, likely in preparation for the standing up of a fourth Patriot air defense battalion. A sale of 100 PAC-3 MSE missiles was approved in December 2022 and is ongoing.

SOURCE: Tu Yu-Min, Liberty Times

Weekly Awards & Solicitations: Facilities Services, Shipping

•On Friday, the Navy’s Zuoying Logistics Support Command solicited two separate bids for refurbishment and construction of shore support/auxiliary facilities at Zuoying Naval Base, both worth NT$49.5 million (US$1.57 million) each, for a total of NT$99.0 million (US$3.14 million).

•On Monday, the MND awarded a NT$347.26 million (US$11.04 million) contract for overseas shipping services of military supplies.

SOURCE: Taiwanese Government E-procurement System

Author: Joe O’Connor

See this week’s Taiwan Arms Tracker update, covering news relating to arms sales, indigenous production, and defense procurement in Taiwan, all below!

Taiwanese, US Companies Partner on VTOL Drones

In a flight demonstration on Thursday at Budai Harbor in Chiayi County, Taiwanese drone manufacturer Taiwan Color Light Technology and US manufacturer Edge Autonomy announced a partnership on a VTOL drone for search and rescue and reconnaissance. The Penguin C MK2.5 has a range of up to 1,500 km and a lifespan of 12 hours, and via licensing, will be produced in Taiwan.

SOURCE: Lin Yi-chang, Liberty Times

F-16 Dual Bomb Racks Delivered to Taiwan

The ongoing project to upgrade Taiwan’s F-16A/Bs has accelerated with footage of BRU-57/A smart dual ejector bomb racks being tested on F-16s this week, per the “IDF Ching-Kuo” fan page. These racks, combined with the AN/ALQ-33 Sniper targeting pod, are used to deliver AGM-154C Joint Standoff Weapons, which are a delayed sale, per recent MND reports.

SOURCE: Lo Tien-bin, Liberty Times

Minister Koo Responds to Rumors of MQ-9 PDA Sale

At an LY hearing on Monday relating to procurement policy, Minister of National Defense Wellington Koo denied reporting that the Biden administration planned to give Taiwan MQ-9B drones via Presidential Drawdown Authority. Koo stated that the MND could not provide specific details, but the sale of MQ-9s was planned and was never a donation.

SOURCE: Huang Jin-wen, Liberty Times

MND Responds to LY Inquiry About RDX Procurement

On Monday, Minister Koo provided a briefing to the LY’s Foreign Affairs and National Defense Committee on a recent contract award for RDX sea-clearing explosives, amid KMT opposition concerns about the selected contractor. Koo stated that the contractor, the “Fumai International Interior Decoration Co.” was selected to prevent cross-border import concerns. In response to the briefing, the committee passed several proposals relating to import documents and cost.

SOURCE: Fang Wei-li & Chen Zhi-cheng, Liberty Times

Weekly Awards: Oshkosh Services, Grenade Fuses

•On Thursday, the Air Force Command awarded a NT$130.72 million (US$4.15 million) for Oshkosh special vehicle maintenance servicing.

•On Wednesday, the Army Command, via the ROC Military Mission to the United States, awarded a NT$860.75 million (US$27.31 million) contract through the AIT for practice grenade fuses.

SOURCE: Taiwanese Government E-Procurement System