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Taiwan's military has earned over $70 million in royalties from the F-16V fighter jet upgrade program, with expectations of several hundred million more in the next five years. After the U.S. and Egypt withdrew from a joint radar upgrade project, Taiwan continued alone, benefiting from a lucrative contract clause requiring royalties from future F-16V aircraft purchases and upgrades.

The F-16V, featuring advanced radar similar to the F-35's, is increasingly sought after by nations due to its lower cost. Taiwan's 2026 defense budget stands at NT$949.5 billion, focusing on unmanned aerial vehicles and missile systems. The defense sector is experiencing strong growth, with drone exports rising 700-fold as Taiwan excludes Chinese components.