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22h ago

Taiwan, Anduril Seal First Co-Production Deals for Missile and Underwater Drone

The move signals a push to localize production for low-cost systems to harden supply in a blockade scenario.

Taiwan’s coast guard conducts its annual drill in southern Taiwan, simulating the seizure of a ferry by 'international terrorists’, in collaboration with Taiwan's military to board and take back control of the boat and evacuate casualties, in Kaohsiung, Taiwan, June 8, 2025. REUTERS/Ann Wang/File Photo
In a first, Taiwan and a US firm are to jointly develop a missile and underwater drone
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Overview

  • NCSIST and Anduril signed agreements to co-manufacture a Barracuda-500–derived autonomous cruise missile and an underwater drone, with a missile prototype unveiled at Taipei’s arms expo.
  • NCSIST targets an 18-month timeline to establish a fully Taiwanese supply chain for the missile, aiming for a per-unit cost of roughly $216,000.
  • The Taipei Aerospace and Defence Technology Exhibition opened with 490 exhibitors at 1,500 booths, including a U.S. pavilion of more than 40 firms such as Lockheed Martin and Northrop Grumman.
  • Taiwan is increasing defense spending toward 5% of GDP by 2030, and industry estimates forecast $50–60 billion in procurement in the coming years.
  • China condemned foreign involvement over Taiwan, with Defense Minister Dong Jun warning against independence moves and vowing to counter external military interference.