Taiwan To Partner With US Firm In First Local Joint Production Of Missiles And Drones Amid China Tensions

In a first, Taiwan will jointly manufacture a missile and an underwater drone with a US defence company, news agency AFP reported, citing officials.

The move comes as the island nation accelerates efforts to strengthen its domestic weapons production in response to growing pressure from China, the NDTV reported.

The National Chung-Shan Institute of Science and Technology (NCSIST) signed an agreement earlier this year with US firm Anduril to produce the Barracuda-500, a low-cost, autonomous cruise missile.

On Thursday (18 September), the two sides inked another deal to co-produce an underwater drone.

These are Taiwan’s first such agreements with a foreign company, NCSIST president Li Shih-chiang told AFP at the Taipei Aerospace and Defense Technology Exhibition, where the Barracuda was on display.

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“Our purpose is if in warfare, even the blockade, we can manufacture every weapon we need to protect ourselves,” Shih-chiang said.

Anduril’s Taiwan head, Alex Chang, said the partnership would prioritise “mass producibility” and sustainable local production, adding the firm would “work very closely” with both the United States and Taiwan.

According to NCSIST, it will take about 18 months to build a Taiwanese supply chain for the Barracuda-500, which is expected to use entirely local components.

Taiwan has expanded military spending over the past decade but still relies heavily on US arms sales to counter Beijing, which claims the island as part of its territory.

Last week, a senior lawmaker said the defence ministry would seek a record $33 billion in special funding to modernise defences, including air defence integration, anti-drone technology, and ammunition stockpiles.

President Lai Ching-te’s administration recently announced plans to increase the 2026 defence budget to Taiwan dollar 949.5 billion (over 3 per cent of GDP) and aims to raise spending to 5 per cent of GDP by 2030.

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