Taiwan President Tsai Ing-wen has announced a plan to increase the defense budget by 1.25 trillion New Taiwan dollars (approximately 40 billion US dollars) in order to enhance the country’s military capabilities. The Ministry of National Defense stated that this additional defense budget will be allocated over 8 years to acquire weapons and equipment that meet the needs of national defense operations, demonstrating Taiwan’s strong commitment to self-defense.
In a press conference held at the Presidential Office after a high-level national security meeting titled “Protecting Democratic Taiwan – National Security Action Plan,” President Tsai highlighted the importance of building key military capabilities to address future warfare challenges. The Ministry of National Defense has finalized the “Enhancing Defense Resilience and Asymmetric Warfare Capabilities Procurement Act” and budget planning, with a planned investment of 1.25 trillion New Taiwan dollars over the next 8 years towards establishing an advanced defense system that benefits both the economy and security.
The Ministry of National Defense emphasized that Taiwan is currently facing severe security challenges, with increasing various forms of provocations from China that shorten Taiwan’s warning time. As a response to these threats, Taiwan’s military, taking advantage of a decade of steady growth in defense budget and military modernization efforts, plans to implement the “Enhancing Defense Resilience and Asymmetric Warfare Capabilities Special Budget” from 2026 to 2033. This special budget will focus on acquiring weapons and equipment necessary for national defense operations to showcase a strong commitment to self-defense.
The implementation period for the special budget is set between 2026 and 2033, with a temporary ceiling of 1.25 trillion New Taiwan dollars. The procurement projects include precision artillery, long-range precision strike missiles, air defense, counter-ballistic and anti-armor missiles, unmanned vehicles and their countermeasure systems, equipment related to enhancing operational sustainability, AI-assisted and C5ISR systems, as well as equipment and systems developed and procured jointly with the United States. The goal is to secure the necessary resources and accelerate the acquisition of essential military capabilities through a one-time allocation of funds.
It is stated that the special budget allocation is characterized by the three main pillars of building a layered defense system to protect Taiwan, introducing high-tech and AI for quicker military responses, and strengthening the defense industry to ensure a reliable supply chain. The objectives of this initiative aim to achieve goals such as establishing an aerial interception network, enhancing command and control systems, weakening threats on multiple levels, long-range precision strikes, enhancing operational resilience, boosting military capacity, and driving economic benefits through defense investments.
The Minister of National Defense, Chiu Kuo-cheng, emphasized the importance of investing in defense as an investment in peace. Taiwan, located at the forefront of the first island chain in the democratic world, is committed to strengthening cooperation with allied nations at all levels to counter authoritarian expansion. The Ministry of National Defense will meticulously prepare and execute the special budget under parliamentary oversight and call for the support and joint efforts of the Taiwanese people to defend their homeland and safeguard their well-being.
Chiu Kuo-cheng pointed out that Taiwan is facing unprecedented security challenges, with China escalating its threats through a variety of means, including grey-zone provocations and military maneuvers aimed at altering the status quo. In response to these threats, Taiwan’s military has adopted a strategy of seeking peace through strength, readiness for war without fearing it, and daring to fight without seeking confrontation. With a solid foundation from a decade of stable defense growth and a review of military preparedness, Taiwan plans to implement the “Enhancing Defense Resilience and Asymmetric Warfare Capabilities Special Budget” from 2026 to 2033 to establish reliable defense capabilities for protecting its people.
He highlighted that China’s provocations have become more diversified, involving various tactics such as infiltration by coastal vessels, cyberattacks, sabotage of undersea cables, drone intrusions, law enforcement violations by government ships, joint military patrols, and targeted military exercises near Taiwan. These provocations are part of China’s efforts to undermine Taiwan’s border security, paralyze its infrastructure and military systems, disrupt external communications, cause military attrition, erode sovereign rights, instigate low-intensity conflicts, and threaten international shipping, energy security, and food supply.
Furthermore, Minister Chiu mentioned that China has conducted military exercises such as “Joint Sword-2024A” series and “Strait Thunder-2025A” exercises, forming a blockade scenario around Taiwan, increasing the risk of transitioning from training to warfare, and compressing Taiwan’s warning time by altering the nature of threats. China’s military expansion activities, including prolonged fleet missions in distant waters, aircraft carrier formations, joint air patrols with Russia, have expanded threats beyond the second island chain, challenging international norms and raising concerns among democratic countries in the Indo-Pacific region.
Chiu reiterated the importance of investing in defense as a means to maintain peace. Positioned as a pivotal point in the first island chain, Taiwan faces heightened threats from China and must quickly enhance its joint combat capabilities, acquire necessary weapons and equipment for defense operations, and strengthen asymmetric warfare capabilities through special budgets focused on naval and air forces from 2022 to 2026. This includes the current plan for “Enhancing Defense Resilience and Asymmetric Warfare Capabilities Special Budget” to establish a comprehensive defense system across different domains.
The upper limit of the “Enhancing Defense Resilience and Asymmetric Warfare Capabilities Special Budget” is set at 1.25 trillion New Taiwan dollars and aims to secure a one-time budget allocation to ensure stable resource concentration and expedited procurement of essential military capabilities. The procurement items include precision artillery, long-range precision strike missiles, air defense and anti-ballistic missile systems, unmanned vehicles and countermeasure systems, equipment for enhancing operational sustainability, AI-assisted and C5ISR systems, as well as equipment and systems jointly developed and procured with the United States.
In conclusion, Minister Chiu stressed that investing in defense is investing in peace. Taiwan, standing at the forefront of the first island chain and the democratic world, is prepared to strengthen cooperation with allied nations at various levels to counter authoritarian challenges. The Ministry of National Defense will meticulously plan and implement the special budget under parliamentary supervision, continuously striving to defend the homeland and protect the well-being of its people.