TAIPEI (Taiwan News) — National Chung-Shan Institute of Science and Technology on Wednesday unveiled the low-cost Barracuda-500 cruise missile, described as the first to be built in collaboration with the US.

NCSIST said it worked with US defense contractor Anduril Industries on the missile, per Reuters. It added the missile would be mass-produced in Taiwan and is designed for coordinated attacks on warships.

Reuters described the missile as the first to be jointly manufactured with a US arms maker.

The unveiling comes as the nation ramps up defense spending to counter a growing China threat and following criticism from US President Donald Trump that Taiwan is not spending enough on defense.

According to the Financial Times, Taiwan is set to raise defense spending by almost a quarter next year, lifting it to more than 3.3% of GDP.

NCSIST President Li Shih-chiang (李世強) said the goal was to build the Barracuda-500 for NT$6.5 million (US$216,493) each. He added it was important to build the missiles in Taiwan because, unlike Ukraine, if there were a blockade or an invasion it would be difficult to import armaments.

“This is a new endeavor,” Reuters quoted Li as saying. “We aim to build our own defense capabilities more swiftly and efficiently, incorporating the latest technologies.”