Taiwan is implementing a multi-layered defence modernisation initiative in response to escalating security challenges and the need to deter possible aggression from China, according to data and analytics company GlobalData.
The modernisation is centred on bolstering air, naval, and unmanned systems capabilities, along with enhancing logistics and support structures to enable sustained military operations.
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GlobalData aerospace & defence analyst Abhijit Apsingikar said: “Persistent Chinese incursions into territorial waters and airspace, along with the constant threat of a potential naval amphibious invasion, have compelled Taiwan to make substantial investments in strengthening its overall defence posture.”
Taiwan’s defence budget is projected to reach $23.5bn by 2030.
GlobalData’s report, Taiwan Defense Market Size and Trends, Budget Allocation, Regulations, Key Acquisitions, Competitive Landscape and Forecast, 2025–30, outlines that the country’s total defence spending between 2026 and 2030 is expected to hit $112.2bn.
Of this, approximately 14.7% to $16.5bn is allocated for acquisitions.
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As part of this effort, Taiwan ordered 66 F-16 Block 70/72 aircraft in 2020, with initial deliveries beginning in March 2025.
Additionally, the existing fleet of 139 F-16 A/B jets has been upgraded to the Block 70/72 standard under the Peace Phoenix Rising programme, which concluded in December 2023.
Taiwan is also working to strengthen its maritime defence capabilities. This includes investments in the Hai Kun-class submarines and the acquisition of the Harpoon coastal defence system. A new 2,500-tonne light frigate is also under development to reinforce the naval fleet.
Apsingikar added: “The ongoing Russo-Ukraine war offers a template for Taiwan to adopt proven methods for defending against a stronger adversary by deploying uncrewed platforms such as uncrewed aerial vehicles, uncrewed ground vehicles, uncrewed surface vessels and uncrewed underwater vehicles. These platforms can assist Taiwan to compensate for its relatively smaller military strength and combat potential”
From 2020 to 2025, Taiwan implemented a substantial defence investment fund, distributed over several years.
The investments were primarily aimed at enhancing defence infrastructure and revitalising domestic research and development. The Navy was a major recipient of these funds.
While the defence Research, Development, Testing and Evaluation (RDT&E) budget for 2025 is relatively modest at $530m, Taiwan is directing these resources towards automated uncrewed systems.
Current projects include the Huilong uncrewed underwater vehicle (UUV), the Endeavor Manta uncrewed surface vessel, and the Tu-40 fixed wing uncrewed aerial vehicle.
