Taiwan has rolled out its first locally produced missile developed with a US defense partner, reinforcing its defense cooperation with Washington as cross-strait tensions with China intensify.
The system, developed by the National Chung-Shan Institute of Science and Technology (NCSIST) in collaboration with California-based Anduril Industries, is modeled on the Barracuda-500—a low-cost, self-guided missile able to strike land and maritime targets. Estimated to cost $216,000 per unit, the missile will enter production within 18 months, though its range remains undisclosed.
NCSIST also presented new prototypes of an underwater drone and an autonomous underwater mine created with Anduril. These developments follow Taiwan’s recent acquisitions of drones, missiles, and unmanned vessels to enhance its deterrence posture.
In 2024, Anduril delivered the first batch of Altius loitering munitions to Taiwan under a foreign military sale. The company also signed an agreement with NCSIST to supply AI-enabled command-and-control systems and unmanned aerial platforms.
Separately, Taiwan is pursuing the domestic manufacture of 1,320 Kuai Chi attack uncrewed surface vessels over the next five years for its naval, marine, and special operations forces. The military has also accelerated drone integration by designating small UAVs as “consumables” and adding drone training into its academy curricula.
Looking ahead, Taiwan’s Ministry of Defense is preparing a $20–30 billion special budget for 2026 to support missile development, drone fleets, uncrewed naval assets, and upgraded command platforms—its fourth such defense allocation.
