Taiwan to spend over NT$1.3 trillion on defense next year

Sep 23, 2026

Taiwan will push its defense budget past a trillion New Taiwan dollars for the first time, a sign it is bracing for pressure from China — good news for drone and robotics makers, and for the island's deterrence.

  • President Lai Ching-te said next year's defense budget will top NT$1.3 trillion, a record.
  • The money goes to weapons purchases, cooperation with other countries, and building weapons at home.
  • Drones and robots are named as priority industries for the military build-out.
  • Strong growth is paying for it: the economy grew 8.76% last year and 14.15% in the first half of this year, lifting tax revenue.
  • Overseas Taiwanese business owners are cast as the bridge to global markets, now anchored in chips, AI, and smart manufacturing supply chains.

Outlook: Expect the spending plan to draw a sharp response from Beijing and to funnel orders toward Taiwan's own drone and defense-tech firms.

← Latest · Archive