Taiwan Unveils $8.75 Billion Defense Upgrade

At a Glance

Taiwan plans to invest 284 billion Taiwanese dollars (~$8.75 billion) to build seven new submarines.
The new submarines will feature an improved design based on Taiwan’s first domestically produced submarine.
Production will occur in batches from 2026 to 2039, with the new submarines carrying enhanced combat systems.
Taiwan’s defense budget reached a record 600.7 billion Taiwanese dollars due to increased pressure from China.

Taiwan’s Naval Defense Initiative

Taiwan’s Ministry of Defense has announced an ambitious plan to invest 284 billion Taiwanese dollars, or approximately $8.75 billion, to build seven new attack submarines. This investment aims to enhance Taiwan’s maritime defense capabilities against increasing regional security tensions, particularly with China.

The new submarines will be based on an improved design of the Hai Kun (Narwhal) prototype, Taiwan’s first domestically produced submarine. This initiative forms part of Taiwan’s broader strategy to modernize its military capabilities independently, highlighting its commitment to self-reliance in defense. Construction will proceed in batches of three, two, and two until 2039.

Enhanced Maritime Defense

The first submarine is scheduled to enter production in 2026, with the second following in 2027. These submarines will feature enhanced combat systems and capabilities to fire both heavy torpedoes and Harpoon missiles. The addition of Harpoon missiles represents a significant upgrade from the current Hai Kun, which can only fire heavy torpedoes.

Under the plan, the submarines will be built incrementally with 18-month intervals between each batch. The first prototype has already showcased an advanced X-shaped rudder and combat systems from Lockheed Martin, and it will carry US-made MK-48 torpedoes. Notably, the project includes provisions for possibly integrating technology and weapon systems provided by the United States.

Critical Timelines and Funding

Taiwan’s defense minister Wellington Koo stated that funds for the new submarines would only be executed once the Narwhal successfully completes its harbor and sea tests. These tests are pivotal in proving the reliability and effectiveness of the new designs and systems before further investment.

“The government is committed to maintaining peace and stability in the Indo-Pacific region, continually enhancing national defense capabilities, and implementing policies such as indigenous vessel and aircraft production to build a resilient Taiwan and safeguard national sovereignty,” Chen said

This defense initiative will span 15 years, with the budget included in the ministry’s annual proposals from 2025 to 2039. The world’s geopolitical landscape continues to evolve, and Taiwan’s expansive project signifies a robust commitment to sustaining regional security and stability amid rising tensions, particularly concerning China’s aggressive posturing.

Strategic Implications

This significant move aligns with broader regional trends of naval modernization, making Taiwan a crucial player in the Asia-Pacific geopolitical landscape. With China and Japan also enhancing their naval capabilities, Taiwan’s strategy not only serves as a deterrent against potential Chinese aggression but also contributes to maintaining a balance of power in the region.

Analysts believe constructing more submarines shows Taiwan’s resolve to defend itself and enhances its capability to counter People’s Liberation Army (PLA) forces, ensuring Taiwan remains a key player in the Asia-Pacific geopolitical landscape. This comprehensive approach to enhancing maritime defense emphasizes Taiwan’s proactive stance in securing its sovereignty and regional influence.