Taiwan to invest $450 million in domestic arms production

Taiwan is investing approximately $450 million (14.14 billion New Taiwan dollars) to expand domestic weapons and ammunition production between 2026 and 2032. The initiative, led by the Manufacturing Center of the Bureau of Armaments, aims to enhance defense readiness and reduce reliance on foreign suppliers during potential crises in the Taiwan Strait.

The funds will be distributed among four key arsenals (plants 202, 205, 209, and 401) to modernize and automate production lines. Key objectives include increasing the capacity for warhead casings, explosives, and artillery shells, as well as introducing robotic equipment to accelerate processes. The program also seeks to diversify production to include armored vehicles, artillery systems, specialized batteries, optical equipment, and chemical, biological, and radiological protection.

A specific priority is the establishment of a production line for 120mm ammunition to support the U.S.-supplied Abrams tanks. While Taiwan remains a major purchaser of American weaponry, local analysts suggest that accelerating domestic production is necessary due to global pressures on the defense industry and potential delays in shipments from Washington.