Overview
- President Lai Ching-te announced a NT$1.25 trillion (US$40 billion) special budget for 2026–2033 to acquire U.S. arms, develop a multi-layer “T‑Dome” air-defense system, and expand missiles, drones and AI.
- Defense Minister Wellington Koo said the figure is an upper limit and will fund precision‑strike missiles plus joint development and procurement with the United States.
- Lai set a goal of achieving a high level of combat readiness by 2027, with defense spending projected at 3.32% of GDP in 2026 and a target of 5% by 2030.
- China condemned the spending and warned it would “crush” foreign interference, while also denouncing Japan’s planned Yonaguni missile deployment near Taiwan.
- The U.S. de facto ambassador in Taipei welcomed the plan as strengthening deterrence, but the package must pass a parliament where the Kuomintang controls key budget levers.