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Taiwan's Cabinet has proposed a NT$1.25 trillion (US$39.16 billion) defense budget, projected to generate over NT$400 billion in output and create 90,000 jobs. The budget focuses on three areas: a T-Dome defense system, AI technologies for enhanced military capabilities, and the growth of domestic defense industries.

Last year, the defense sector produced NT$230.8 billion, including NT$12.9 billion from drones and NT$69.6 billion from shipbuilding. The drone sector saw exports increase from NT$140 million to NT$2.95 billion.

The Ministry of National Defense plans to construct 198 vessels, with 145 already delivered. The defense sector is recognized as a strategic industry for Taiwan's future development.