Taiwan Proposes NT$1.25 Trillion Defense Budget to Boost Domestic Weapons Production

Taiwan's government has proposed a NT$1.25 trillion (US$38.95 billion) special defense budget focused on long-term domestic weapons production, according to Minister of National Defense Wellington Koo. The proposal is deemed more comprehensive than those from opposition parties, which include the Chinese Nationalist Party's NT$380 billion plan. The budget aims to fund 200,000 uncrewed aerial vehicles and over 1,000 uncrewed surface vessels, emphasizing the need for a local drone industry amid increasing threats from China.

Published Mar 24, 2026

Taiwan's proposed special defense budget of NT$1.25 trillion (US$38.95 billion) is intended to enhance domestic weapon production, as stated by National Defense Minister Wellington Koo. The proposal includes funding for 200,000 uncrewed aerial vehicles and over 1,000 uncrewed surface vessels.

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Koo criticized opposition parties for their smaller budget proposals, which he claimed do not support long-term defense needs. The review of budget proposals is ongoing, with a detailed evaluation scheduled. Additionally, Koo stated the delivery of the first F-16V jets from the US is expected in September, with 59 units currently in assembly.