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Taiwan invests $450 million in large-scale arms production

The island nation is expanding its military factories in a six-year plan to reduce dependence on foreign supplies and secure ammunition in case of a possible conflict

Sep 7, 2026 06:58 43

Taiwan invests $450 million in large-scale arms production - 1

Taiwan is investing nearly $450 million to expand domestic arms and ammunition production over the next six years to boost its defense readiness in the event of conflict.

The island's Ministry of National Defense plans a major modernization of its key factories between 2026 to 2032 year. The investment amounts to 14.14 billion New Taiwan dollars (about 446.25 million US dollars) and aims to reduce the country's dependence on foreign supplies in the event of a crisis in the Taiwan Strait.

Modernization and automation of military factories

The project is led by the Production Center of the Taiwan Armaments Bureau. The funds will be distributed among four main arsenals (factories 202, 205, 209 and 401). The main directions of the program include:

  • Production Line Expansion: Increase capacity for production of warhead casings, explosives and artillery shells.
  • Introduction of automation: Implementation of semi-automatic and fully robotic equipment to accelerate processes.
  • Production diversification: Production of armored vehicles, artillery systems, specialized batteries, optical equipment and means of chemical, biological and radiological protection.

Special emphasis is placed on the construction of a line for 120mm ammunition to support the modern Abrams tanks supplied by the US.

Reducing dependence on the US

While Taiwan remains a major buyer of American weapons, delays in deliveries from Washington due to global pressure on the defense industry are forcing Taipei to accelerate its own production. Local analysts point out that the development of the local sector will serve as a logistical bridge during a potential blockade.