Taiwan is finalizing a new special defense budget worth up to $30 billion to improve its missile and drone arsenal. The Ministry of National Defense is expected to present the proposal by month’s end, marking its fourth such request for 2026.
This initiative supports the procurement of advanced systems such as missiles, unmanned aerial and surface vehicles, and new command technologies, sourced from both local manufacturers and US defense firms.
The move follows earlier efforts to increase overall defense spending to $20 billion, though some programs, like submarine development and the drone industry park, were scaled back due to funding limitations and political pushback.
In response to escalating tensions with China, Taiwan is accelerating its investment in unmanned tech. A recent agreement with Anduril will provide new aerial platforms and a command hub. Additionally, Taiwan aims to build nearly 49,000 drones by 2027, including the new FPV “Overkill” drone designed for stealth attacks and maritime defense.
