Taiwan Readies Major Special Defense Budget Amid Strategic Shift to Unmanned Warfare
Taiwan is set to submit a new special defense budget worth up to $30 billion to enhance its missile and drone capabilities, in response to the growing threat from China. According to Taiwan News, the Ministry of National Defense’s proposal is expected by the end of the month and would constitute the fourth special military fund for 2026.
The budget outlines procurement plans for a wide range of systems: precision missiles, combat drones, autonomous naval platforms, and upgraded command structures. Both Taiwanese and US firms are anticipated as suppliers. However, defense spending remains politically contentious in Taipei, with previous efforts facing pushback from opposition lawmakers.
Despite fiscal tightening earlier this year—resulting in significant cuts to submarine and drone infrastructure projects—Taiwan is pressing forward on unmanned capabilities. In July, it announced plans to build 48,750 drones locally by 2027, covering five drone categories, including multi-rotor and hybrid types. Strict controls are in place to exclude Chinese-linked suppliers.
Additionally, Taiwan unveiled the “Overkill” drone, a first-person-view loitering munition engineered for high-precision strikes. Built with Auterion’s advanced camera and guidance tech—also fielded in Ukraine—the drone is designed to elude air defense systems through stealthy flight paths and low-altitude maneuvers.
