Taiwan's government plans to propose a 16% increase in defence spending for 2027, pushing the total past NT$1.1 trillion for the first time and exceeding 3% of GDP, according to budget details ahead of the Executive Yuan's 20 August review.
The overall budget covers coast guard, veterans' affairs and special procurement programmes. The Executive Yuan in June submitted a special procurement bill for domestically produced unmanned vehicles, with a spending cap of NT$210 billion through 2031. Two earlier special budgets covering economic resilience and asymmetric warfare capabilities have already passed the legislature.
President Lai Ching-te recently inspected the Han Kuang military exercises in Taoyuan. The proposed increase follows China's 7% rise in defence spending to 1.91 trillion yuan announced in March. Taiwan is also home to semiconductor giant TSMC, listed in Taipei and New York with a market value exceeding $2 trillion.