TAIPEI (Taiwan News) — DPP legislators attending the US-Taiwan Defense Industry Conference in Maryland on Monday said Taiwan’s government plans to propose a new NT$1.3 trillion (US$42.49 billion) special defense budget by late October or early November.

DPP Legislators Wang Ting-yu (王定宇) and Puma Shen (沈伯洋), speaking on the sidelines of the conference, said China’s growing military threats to neighboring countries have prompted Taiwan to allocate more funding for defense. They also noted that US President Trump’s calls for allies to increase defense spending have underscored the necessity of boosting Taiwan’s military budget, per CNA.

Wang said these developments present an opportunity to enhance Taiwan-US military and security cooperation, particularly in defense industry supply chains. Strengthening such cooperation will not only create economic benefits during peacetime but also bolster Taiwan’s combat readiness and self-sufficiency in wartime, said Wang. 

According to Wang, the proposed defense budget will target four major areas: developing the “T-Dome” missile shield, enhancing asymmetric combat capabilities, expanding war reserve inventory, and strengthening domestic defense industry production.

The T-Dome missile shield will integrate domestically produced and US-supplied weapons systems under a unified command-and-control network incorporating AI to counter Chinese air and missile threats, Wang said.

The second focus will be on asymmetric warfare, including the development of unmanned vehicles, drones, and counter-drone systems. The third will increase Taiwan’s strategic inventory and supplies, while the fourth area of spending will boost domestic defense production capacity, ensuring Taiwan can manufacture critical items such as ammunition, guns, and Patriot missiles.

“In peacetime, this will strengthen our defense supply chain and competitiveness. In wartime, it will allow Taiwan to achieve self-sufficiency in essential military production,” said Wang.

Shen said the conference, which previously centered on weapons procurement, now includes broader topics such as whole-of-society defense resilience, cybersecurity, and intelligence sharing.

The US-Taiwan Defense Industry Conference, organized by the US-Taiwan Business Council, has been held annually since 2002 and brings together officials, defense industry leaders, and scholars from both countries. Around 200 participants are expected to attend this year’s event, held from Sunday to Tuesday.