Overview
- President Lai announced a special NT$1.25 trillion budget for 2026–2033 to speed procurement and development of new defenses.
- The plan prioritizes precision missiles, drones, and a domestic ‘T‑Dome’ air‑defense system with advanced detection and interception.
- Officials project defense outlays at about 3.32% of GDP in 2026 with an aspirational target of 5% by 2030.
- Defense Minister Wellington Koo described the $40 billion as a spending ceiling and emphasized joint development and purchases with the United States.
- Beijing criticized the initiative as driven by “external forces,” while the U.S. representative in Taipei voiced support for rapid asymmetric capability gains.