Taiwan Plans $20–30 Billion Special Defense Budget to Boost Drones, Missiles

Taiwan’s Ministry of National Defense is finalizing a proposal for a special defense budget ranging from 600–900 billion New Taiwan dollars ($20–30 billion), aimed at accelerating its missile and drone modernization. The budget, expected by month-end, will mark the fourth special allocation for 2026.

Funds will be used to procure attack drones, uncrewed vessels, advanced missile systems, and upgraded command platforms from both domestic and US suppliers. The initiative comes as Taipei seeks to enhance deterrence amid rising tensions with Beijing.

Despite internal political friction, Taiwan continues to prioritize unmanned systems. A recent deal with US-based Anduril includes drone platforms and a command-and-control system, while a domestic plan will deliver nearly 49,000 drones by 2027, using only Taiwan-made components and excluding any linked to China.

Among these, the “Overkill” first-person-view strike drone—designed for precision strikes—incorporates Auterion’s advanced targeting and navigation systems, mirroring those used in Ukraine.

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