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.