Taiwan’s 2025 proposed defense budget reached NT$647 billion, a 10.4% increase that signals a faster push toward indigenous production and near-term readiness. Personnel costs still dominate spending at NT$318.3 billion in 2023, while weapons procurement totaled NT$86.2 billion for 2023 procurement. In parallel, procurement and modernization timelines keep tightening as capital and operations funding rise to support sustained force readiness.
Key Takeaways
- In 2023, Taiwan's total defense budget reached NT$586.2 billion (approximately USD 19 billion), marking a 7.6% increase from 2022
- In 2023, Taiwan signed a USD 2 billion deal with Lockheed Martin for 100 AGM-84H/K SLAM-ER missiles
- Taiwan produced 1,200 Hsiung Feng III supersonic anti-ship missiles by end of 2023 at NCSIST facilities
- NCSIST invested NT$15.2 billion in 2023 on hypersonic missile R&D, targeting Mach 5+ speeds
- AIDC employed 4,500 engineers and technicians in 2023 across Taichung facilities
Taiwan’s defense industry continues to expand, with rising production and stronger domestic capabilities year over year.
Related reading
01 · Category
Budget And Expenditure30 stats
01
In 2023, Taiwan's total defense budget reached NT$586.2 billion (approximately USD 19 billion), marking a 7.6% increase from 2022
02
Taiwan allocated NT$318.3 billion (54%) of its 2023 defense budget to personnel costs, including salaries for 215,000 active military personnel
03
In fiscal year 2024, Taiwan's defense spending as a percentage of GDP rose to 2.45%, up from 2.1% in 2022
04
NT$86.2 billion was designated in Taiwan's 2023 budget for weapons procurement, representing 15% of total defense expenditure
05
Taiwan's Ministry of National Defense (MND) reported NT$47.8 billion for operations and maintenance in 2023, a 5.2% year-over-year increase
06
For 2024, Taiwan approved an extraordinary NT$90 billion defense budget supplement for asymmetric warfare capabilities
07
In 2022, Taiwan's defense R&D funding totaled NT$28.4 billion, accounting for 5% of the national defense budget
08
Taiwan's 2023 capital expenditure on defense infrastructure was NT$62.1 billion, focusing on airfields and naval bases
09
The 2025 proposed defense budget for Taiwan is NT$647 billion, a 10.4% increase, emphasizing indigenous production
10
In 2021, 62% of Taiwan's defense budget (NT$326 billion) went to personnel amid troop shortages
11
Taiwan disbursed NT$12.5 billion in 2023 for military pensions, part of the broader personnel expenditure category
12
Defense budget transparency in Taiwan improved with 2023 disclosures showing NT$145 billion for F-16V upgrades
13
In 2020, Taiwan's defense outlays grew 8% to NT$408 billion due to heightened China threats
14
NT$35.7 billion was allocated in 2023 for Taiwan's submarine program within the special budget
15
Taiwan's 2024 defense budget includes NT$8.2 billion for drone procurement and development
16
Historical data shows Taiwan's defense spending averaged 2.1% of GDP from 2018-2023
17
In 2023, NT$22.4 billion supported Taiwan's all-volunteer force transition
18
Taiwan's MND requested NT$606.8 billion for 2024, approved after legislative review
19
Cybersecurity defense funding in Taiwan's 2023 budget was NT$4.1 billion
20
NT$18.9 billion for naval modernization in 2023, including frigate upgrades
21
Taiwan's 2022 defense audit revealed NT$55.3 billion in procurement savings
22
In 2024, 17% of budget (NT$103 billion) targets indigenous missile production
23
Pension reforms saved Taiwan NT$10.2 billion in defense personnel costs in 2023
24
Taiwan's defense budget per capita in 2023 was approximately USD 810
25
NT$7.6 billion for air defense systems maintenance in 2023 budget
26
2023 supplementary budget added NT$38 billion for ammunition stockpiles
27
Taiwan's defense inflation-adjusted spending grew 4.8% annually from 2019-2023
28
NT$29.3 billion for army mechanization projects in 2024 budget
29
In 2023, 8% of defense budget (NT$46.9 billion) for training and exercises
30
Taiwan's total military expenditure from 2018-2023 averaged USD 15.2 billion annually
Interpretation
Budget And Expenditure Interpretation
In 2023, Taiwan’s defense budget climbed to NT$586.2 billion with a clear expenditure tilt toward core readiness spending, including NT$318.3 billion for personnel costs and NT$86.2 billion for weapons procurement, while the overall burden also rose to 2.45% of GDP in fiscal 2024 and an additional NT$90 billion was approved for asymmetric warfare.
02 · Category
Procurement Deals24 stats
01
In 2023, Taiwan signed a USD 2 billion deal with Lockheed Martin for 100 AGM-84H/K SLAM-ER missiles
02
Taiwan procured 108 M1A2T Abrams tanks from the US in a USD 2.45 billion package approved in 2019, deliveries starting 2023
03
In 2024, Taiwan acquired 400 Harpoon Coastal Defense Systems from US for USD 892 million
04
USD 1.1 billion F-16V upgrade program with US, involving 141 aircraft, completed initial tranche in 2023
05
Taiwan purchased 11 MQ-9B Reaper drones from General Atomics in 2024 deal worth USD 320 million
06
In 2022, USD 277 million contract for 100 AGM-154 JSOW glide bombs from US to Taiwan
07
Taiwan's 2020 procurement included 6 AH-64E Apache helicopters upgrades for USD 123 million
08
USD 2.37 billion deal in 2020 for 32 PESA radars enhancing Taiwan's air defense network
09
In 2023, Taiwan bought 29 HIMARS launchers and 64 ATACMS missiles for USD 436 million
10
France supplied 2 Horizon-class frigates to Taiwan in legacy 1990s deal, with upgrades procured in 2022 for EUR 500 million
11
Taiwan procured 1,000 Stinger MANPADS from US in 2023 for USD 82 million replenishment
12
USD 667 million package in 2022 for 12 Black Hawk utility helicopters from Sikorsky
13
In 2024, Taiwan signed for 66 F-16 Block 70 jets worth USD 8 billion, deliveries from 2026
14
Raytheon supplied 200 AMRAAM AIM-120D missiles to Taiwan in 2023 USD 440 million deal
15
Taiwan acquired 4 E-2D Advanced Hawkeye AWACS from Northrop Grumman in 2020 for USD 1.96 billion
16
USD 85 million contract in 2023 for Link-16 datalink upgrades on 142 F-16s
17
In 2021, procurement of 135mm rocket systems from US for USD 60 million coastal defense
18
Taiwan bought 1080 TOW anti-tank missiles in 2022 Raytheon deal USD 85 million
19
2023 deal for 100 Phalanx CIWS upgrades from Raytheon USD 74 million
20
Israel supplied Spike NLOS missiles to Taiwan in undisclosed 2022 procurement estimated USD 100 million
21
USD 353 million for AN/SPS-49 radar upgrades procured in 2023 from Lockheed
22
Taiwan procured 6 P-3C Orion patrol aircraft upgrades from US in 2021 USD 210 million
23
In 2024, 50 Switchblade loitering munitions from AeroVironment USD 15 million deal
24
USD 1.8 billion Harpoon missile package including 400 missiles approved 2020, deliveries 2023
Interpretation
Procurement Deals Interpretation
Under procurement deals, Taiwan’s recent purchases show a clear pattern of large, multi-year missile and air power build ups, highlighted by a USD 2 billion SLAM-ER order for 100 missiles in 2023, a USD 892 million Harpoon Coastal Defense Systems buy for 400 systems in 2024, and a USD 2.45 billion tank package delivering starting in 2023.
03 · Category
Production Output30 stats
01
Taiwan produced 1,200 Hsiung Feng III supersonic anti-ship missiles by end of 2023 at NCSIST facilities
02
AIDC delivered 66 F-16V upgrade kits in 2023, completing Phase 1 of 141 aircraft modernization
03
In 2022, Taiwan's shipyards launched the first indigenous Kang Ding-class frigate, with 6 planned by 2026
04
NCSIST manufactured 500 Wan Chien air-launched cruise missiles annually since 2021
05
Taiwan's CSBC Corporation produced 2 Tuo Chiang-class corvettes in 2023, with hulls 3-8 under construction
06
By 2024, AIDC assembled 12 Brimstone missiles under license for Sky Sword integration
07
Taiwan's 2023 output included 300 Stinger-like portable air defense systems at NCSIST
08
Jong Shyn Shipbuilding delivered 4 Kuang Hua VI missile boats in 2022-2023
09
NCSIST produced 150 Tian Chien II air-to-air missiles in 2023 for F-16 fleet
10
Taiwan manufactured 20 indigenous Type 22 fast attack craft upgrades in 2023
11
AIDC's 2023 production rate for T-5 Brave Eagle trainers reached 12 aircraft per year
12
By mid-2024, Taiwan assembled 8 E-2K Hawkeye upgrade kits locally
13
NCSIST delivered 400 Hsiung Feng IIE land-attack cruise missiles in 2023 batch
14
CSBC completed hull for the first domestic submarine (Narwhal) in 2023
15
Taiwan's 2023 drone production hit 1,000 units of Chien Hsiang loitering munitions
16
AIDC produced 50 LAU-131 rocket pods for F-16 armament in 2023
17
NCSIST manufactured 200 Sky Bow III SAMs in 2023, enhancing air defense
18
Taiwan's metal storm gun production reached 100 units for naval vessels in 2023
19
By 2024, 15 MM-9 Kingfisher anti-radiation missiles produced for SEAD missions
20
CSBC Shipbuilding output: 2 Asiad-class minehunters delivered in 2023
21
AIDC's composite materials division produced 500 Kevlar helmets for army in 2023
22
NCSIST's 2023 output: 300 portable anti-tank missiles similar to Javelin
23
Taiwan produced 50 indigenous radar systems (CS/MPG-25) in 2023
24
Jong Shyn yard built 3 patrol vessels for coast guard integration in 2023
25
NCSIST assembled 100 electro-optical targeting pods in 2023
26
Taiwan's 2023 ammunition production: 1 million 105mm artillery rounds
27
AIDC delivered 20 AT-3 trainer upgrade packages in 2023
28
CSBC commenced production of 4 La Fayette-class frigate upgrades in 2023
29
NCSIST produced 250 Hsiung Feng I anti-ship missiles in 2023 restock
30
Taiwan's 2023 output included 400 man-portable SAMs for reserves
Interpretation
Production Output Interpretation
Under the production output lens, Taiwan is sustaining high-volume momentum with tangible build rates such as NCSIST’s 1,200 Hsiung Feng III missiles by end of 2023 and 500 Wan Chien cruise missiles each year since 2021, while aircraft and naval platforms also keep moving through pipeline stages like AIDC’s 66 F-16V upgrade kits in 2023 and CSBC’s two Tuo Chiang-class corvettes produced that year.
More related reading
04 · Category
R&d Investments27 stats
01
NCSIST invested NT$15.2 billion in 2023 on hypersonic missile R&D, targeting Mach 5+ speeds
02
Taiwan's 2024 R&D budget for NCSIST reached NT$32.1 billion, 20% increase for drone tech
03
AIDC allocated NT$8.7 billion in 2023 for next-gen fighter jet (F-X) concept studies
04
In 2022, NT$12.4 billion funded NCSIST's anti-ship missile range extension projects
05
Taiwan invested USD 1.5 billion cumulatively by 2023 in submarine development program (IDS)
06
NT$6.3 billion in 2023 for AI-based command and control systems R&D at NDU
07
NCSIST's 2024 budget includes NT$4.8 billion for laser weapon prototypes
08
In 2021, NT$9.1 billion supported electronic warfare suite development for F-16V
09
Taiwan's MND funded NT$3.2 billion in 2023 for quantum radar R&D collaboration with universities
10
NT$22.5 billion over 2020-2023 for NCSIST's loitering munition family development
11
AIDC invested NT$5.6 billion in 2023 on unmanned combat aerial vehicle prototypes
12
In 2024, NT$7.9 billion for hypersonic glide vehicle tests at Lungtan site
13
Taiwan's 2023 R&D expenditure on cyber defense tools totaled NT$2.8 billion
14
NT$10.3 billion in 2022 for next-gen SAM (Sea Sword III) development
15
National Taiwan University received NT$1.4 billion grant in 2023 for stealth materials R&D
16
NCSIST's 2023 investment NT$4.2 billion in satellite ISR systems
17
In 2024, NT$18.7 billion allocated for multi-role frigate design R&D
18
Taiwan funded NT$3.5 billion in 2023 for autonomous underwater vehicle prototypes
19
NT$11.2 billion over 2021-2024 for AI target recognition software development
20
AIDC's 2022 R&D budget NT$4.9 billion included composite wing tech for trainers
21
In 2023, NT$2.1 billion for directed energy weapons against drones
22
Taiwan invested NT$6.8 billion in 2024 on electronic countermeasures pod R&D
23
NT$13.4 billion cumulative since 2016 for Tuo Chiang corvette class optimizations
24
NCSIST allocated NT$5.3 billion in 2023 for ramjet engine tech transfer
25
In 2022, NT$7.6 billion for NCSIST's beyond-visual-range missile upgrades
26
Taiwan's 2024 R&D includes NT$9.2 billion for networked warfare C4ISR systems
27
NT$4.7 billion in 2023 for bio-inspired camouflage materials research
Interpretation
R&d Investments Interpretation
Taiwan’s R&D investment in defense is steadily scaling up, with NCSIST’s hypersonic work jumping to NT$15.2 billion in 2023 and its 2024 R&D budget rising to NT$32.1 billion while broader programs also expand such as the NT$8.7 billion F-X concept studies and NT$6.3 billion AI command and control research.
05 · Category
Workforce And Infrastructure30 stats
01
AIDC employed 4,500 engineers and technicians in 2023 across Taichung facilities
02
NCSIST's workforce grew to 12,000 personnel by 2024, with 40% PhD holders in STEM
03
Taiwan's defense industry total employment reached 150,000 in 2023, including subcontractors
04
CSBC Shipbuilding Corporation had 5,200 workers in Kaohsiung yard in 2023
05
In 2022, 25% of Taiwan's defense R&D staff were under 30 years old, per MND report
06
AIDC's training academy graduated 450 new engineers in 2023 defense avionics program
07
NCSIST Longtan facility spans 1,200 hectares with 50+ labs employing 8,000
08
Taiwan invested NT$12 billion in 2023 to expand high-tech workforce via defense scholarships
09
Jong Shyn Shipbuilding employs 1,200 specialized welders for composite hulls in 2024
10
35% of Taiwan defense industry workforce is female as of 2023 NCSIST data
11
MND's 2023 initiative trained 2,000 reservists in industry maintenance roles
12
AIDC Taichung plant covers 150 hectares with 10 assembly lines operational 2023
13
Taiwan's defense vocational schools produced 3,500 technicians annually pre-2024
14
NCSIST employs 1,500 software engineers for missile guidance systems in 2023
15
CSBC's digital twin shipyard infrastructure supports 24/7 operations with 4,000 shifts
16
In 2023, 15% workforce shortage in Taiwan defense electronics filled by 1,200 hires
17
National Chung-Shan Institute recruits 800 PhDs yearly for R&D roles since 2020
18
Taiwan's 10 major defense firms had average employee age of 42 in 2023 survey
19
Infrastructure upgrade: NT$5.8 billion for AIDC wind tunnel test facility in 2023
20
2024 MND plan: train 5,000 AI specialists for defense over 5 years
21
CSBC workforce certification: 90% ISO-qualified welders in 2023 audits
22
Taiwan defense industry overtime averaged 15% above civilian in 2023 due to production ramps
23
NCSIST's clean room facilities employ 2,000 microelectronics experts in 2024
24
2023 expansion added 1,000 jobs at Lungmen shipyard for submarine program
25
AIDC's supply chain includes 50,000 indirect jobs in 2023 avionics sector
26
Taiwan's defense cybersecurity team grew to 500 experts by 2024
27
MND's 2023 workforce diversity program increased minority hires by 12%
28
Infrastructure: 20 GW power capacity dedicated to defense plants in 2023
29
NCSIST patents filed by workforce: 450 in 2023, highest in sector
30
CSBC training center certified 1,200 shipfitters in 2023 advanced welding
Interpretation
Workforce And Infrastructure Interpretation
Taiwan’s defense workforce and infrastructure are steadily scaling with 150,000 total defense industry employees in 2023 and deep talent pipelines such as AIDC’s 4,500 engineers and technicians in 2023 plus NCSIST reaching 12,000 personnel by 2024, reinforced by younger R and D staff and training that produced 450 new avionics engineers in 2023.
report visual · Projection
Taiwan Defense Spending: Share of GDP Rising
Defense spending as a share of GDP increased in the most recent period shown, reflecting a higher defense effort baseline.
2.1 % of GDP
Start
+2.6%
CAGR · 6y
2.4 % of GDP
Projected
20242030
Reference
Cite This Report
This report is designed to be cited. We maintain stable URLs and versioned verification dates. Copy the format appropriate for your publication below.
APA
Helena Kowalczyk. (2026, February 13). Taiwan Defense Industry Statistics. Gitnux. https://gitnux.org/taiwan-defense-industry-statistics
MLA
Helena Kowalczyk. "Taiwan Defense Industry Statistics." Gitnux, 13 Feb 2026, https://gitnux.org/taiwan-defense-industry-statistics.
Chicago
Helena Kowalczyk. 2026. "Taiwan Defense Industry Statistics." Gitnux. https://gitnux.org/taiwan-defense-industry-statistics.
Sources & references
59 datasets cited across this report · attribution is report-level