Author: Joseph O’Connor, Shikhar Chaturvedi, Danielle Kremer, & Wyeth Lindberg
This week: the MND disclosed official visits to F-16 and MQ-9B production facilities, the Legislative Yuan began multiple days of hearings to consider the special defense budgets, and Minister Koo discussed plans for drone procurement, alongside weekly awards and solicitations.
MND Announces Visits to U.S. F-16, MQ-9B Facilities
As of March 21, the first Taiwanese F-16 Block 70 has completed its Acceptance Check Flight at Lockheed Martin facilities in Greenville, South Carolina. These tests were attended by several Taiwanese officials, including, Deputy Minister of National Defense Hsu Szu-chien, Deputy Air Force Chief of Staff General Tian Zhongyi, and the Taiwanese Representative to the U.S., Alexander Yui. In an MND press release, they stated that this success means Lockheed will begin their deliveries to Taiwan.
On March 21, the MND also confirmed that several Taiwanese officials attended a handover ceremony in the United States for two of the four MQ-9B SeaGuardian maritime surveillance drones purchased for NT$21.7 billion (US$674.02 million). However, the MND clarified that the two drones would stay in the United States for continued testing, with delivery expected in the third quarter of this year.
Monday LY Hearing Provides Updates on Budgets
On Monday, the Legislative Yuan’s Foreign Affairs and National Defense Committee began formal consideration of three competing proposals for special defense budgets, submitted by the Lai administration, the Taiwan People’s Party (TPP), and the Kuomintang (KMT). Minister of National Defense Wellington Koo, alongside other officials, attended Monday’s question-and-answer session, reiterating that the administration’s budget is the most comprehensive. Koo also clarified that the first two MQ-9B SeaGuardians are expected to be delivered by the third quarter of the year and that the first F-16 Block 70 could arrive as early as September 2026.
Koo Discusses Plans for Drone Procurement
During a March 23 review in the Legislative Yuan’s Foreign Affairs and National Defense Committee,the MND proposed procurement of more than 200,000 drones and 1,000-plus unmanned surface vessels. The proposal is best understood as an attempt to lock in a multi-year domestic unmanned systems production base. Minister Wellington Koo’s main defense of the plan is that annual budgeting cannot generate the steady demand needed for firms to build production lines, lower costs, and incorporate iterative upgrades, whereas the Executive Yuan’s eight-year special budget would allow procurement in batches as technology evolves. Koo and other Taiwanese officials are also tying the drone tranche to the creation of a “non-red” supply chain, arguing that reliance on PRC-linked components creates cyber and operational risks. That logic aligns with the Executive Yuan’s broader 2025-2030 drone industry plan, which seeks to expand and improve public-sector procurement, while deepening cooperation with U.S., European, and Japanese partners. Koo’s proposed plan aims to build the domestic industrial base that Taiwan will need for longer-term drone cooperation with the U.S. and other partners.
Wednesday Special Budget Hearing and Updates
Today, March 25, the LY’s Foreign Affairs and National Defense Committee re-convened for a markup session of special defense budget proposals, expected to continue into tomorrow, March 26. During this morning’s meeting, the committee achieved consensus and passed several provisions, including those relating to procurement planning (taken from the KMT proposal) and authorities, but failed to reach consensus on provisions relating to legislative purpose, specific procurement items, and the topline budget amount.
Opposition legislators, including KMT Legislator Hsu Chiao-hsin, took issue specifically with the government’s proposed budget items. Hsu accused some spending categories of being too vague or sometimes classified, arguing instead that opposition proposals such as from the KMT, already list known capabilities that Taiwan intends to purchase. DPP Legislator Puma Shen, backing the proposal, argued that less clear budget items provide flexibility in case of changes in price or schedule, which competing proposals would require an amendment for.
Weekly Awards/Solicitations
On Thursday, several bid solicitations and awards were announced:
The Army Command solicited bids for the purchase of one-day assault bags, personal carrying bags and multifunctional combat belts, worth NT$422.95 million (US$13.20 million).
The Army Logistics Command made a repeat solicitation of bids for Zero-annex specification editing and review equipment, worth NT$41.90 million (US$1.31 million).
The Naval Command and ROC Military Mission to the United States awarded the American Institute in Taiwan a NT$1.49 billion (US$46.65 million) contract for a second order of “naval spare parts.” The contract is to be fulfilled in the Zuoying District of Kaohsiung City.
Additionally, the Naval Command and ROC Military Mission to the United States awarded the American Institute in Taiwan another NT$1.49 billion (US$46.65 million) contract for a second batch of “aviation spare parts.” The contract will also be fulfilled in the Zuoying District of Kaohsiung City.
On Tuesday, the Army Command solicited bids for the purchase of full-band handheld radios, worth NT$1.80 billion (US$56.38 million).