Taiwan’s Ministry of National Defense is preparing to submit a special defense budget ranging from NT$600 to NT$900 billion (approximately $20–30 billion), aimed at strengthening its drone and missile capabilities. The proposal is expected by the end of the month and would be the fourth special defense budget for 2026.
The funding will cover various defense systems, including attack drones, missiles, uncrewed surface vessels, and upgraded command platforms, with purchases likely from both domestic and US suppliers. The plan reflects Taiwan’s growing urgency to enhance its defense in light of rising threats from China.
Earlier this year, Taiwan had proposed a $20 billion defense budget—around 2.5% of GDP—but faced internal cuts, including a 50% reduction in submarine program funding and delays in establishing a drone industry park.
To boost its unmanned systems, Taiwan recently signed a deal with US-based Anduril for aerial drones and a command system. The country also plans to procure 48,750 domestically produced drones by 2027, across five categories, all made without Chinese components. Among them is the “Overkill” drone, designed for precision strikes with tech used in Ukraine.
