On November 27, 2025, the Executive Yuan approved a draft special act on procurement to enhance defensive resilience and asymmetric capabilities. This legislation responds to the Chinese Communist Party's continuing expansion of military threats and seeks to reinforce Taiwan's self-defense armaments while balancing government fiscal stability, national security and overall economic development. The proposed act sets a provisional budget ceiling of NT$1.25 trillion (approximately US$40 billion) to establish a multi-layer defense structure, including the "T-Dome" air and missile defense system; introduce high-tech and AI systems to accelerate kill chains; spur growth in defense industries; and build non-red supply chains. The goal is to comprehensively strengthen Taiwan's democratic defense capabilities and support the development of national defense-related industries.
■ Strengthening democratic defense capabilities: Build a modernized defense architecture and fully upgrade the armed forces' capacity for modern warfare by acquiring seven categories of advanced weapons and equipment: (1) precision artillery; (2) long-range precision strike missiles; (3) air-defense, anti-ballistic and anti-armor missiles; (4) drones and counter-drone systems; (5) equipment that enhances operational sustainment; (6) AI-assisted and C5ISR systems; and (7) equipment and systems jointly developed or procured through Taiwan-U.S. cooperation.
■ Developing national defense-related industries: Expand defense procurement requirements to promote industrial upgrading and development, particularly in fields such as unmanned aerial and marine vehicles, aerospace, shipbuilding, quadruped robots and satellites. Accelerate the achievement of self-reliance in critical defense technologies and catalyze the upgrading and development of related industrial chains.