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.