TAIPEI (Taiwan News) — The Cabinet on Thursday proposed a special budget of up to NT$210 billion (US$6.7 billion) over five years for domestically developed drones and unmanned vessels.
The funding would cover aerial drones and unmanned surface vessels, from August through the end of 2031, per CNA. Premier Cho Jung-tai (卓榮泰) said the goal is to achieve "local supply, domestic production, and independent maintenance" of unmanned platforms.
In May, the legislature passed a NT$780 billion special defense procurement bill, allocating NT$300 billion for a first batch of US arms purchases and NT$480 billion for a second batch. However, projects involving drones, unmanned vessels, the Taiwan Tactical Network, Team Awareness Kit systems, and Strong Bow missiles were excluded.
The Cabinet said the new act would provide dedicated funding for unmanned systems, which President Lai Ching-te (賴清德) has identified as a defense priority, per CNA. The program would use long-term contracts and upgrades to strengthen asymmetric warfare capabilities.
The initiative would build a "non-red" supply chain that excludes Chinese components while enhancing military readiness. It would include coastal surveillance drones, coastal attack drones, and small suicide drone boats.
Cabinet Spokesperson Michelle Lee (李慧芝) cited Cho as saying the government's original NT$1.25 trillion defense proposal included the T-Dome missile defense network, a high-tech kill chain, and development of the domestic defense industry, CNA reported. He said lawmakers' reduction of the package to NT$780 billion excluded key projects and weakened the overall plan.
The initiative is expected to support industries including AI, communications equipment, batteries, and maintenance services. Cho said it could help establish unmanned systems as a strategic emerging industry, benefiting both national defense and the civilian economy.
The draft bill will now be sent to the legislature for review. Cho has instructed the defense ministry to communicate with lawmakers across party lines in the hope of securing swift passage.
