Taiwan approves $7.6bn drone budget

Taiwan lawmakers approved a $7.6 billion budget for locally made drones on Thursday as the island seeks to strengthen its defences against a potential Chinese attack.

The spending proposal, backed by the opposition Kuomintang and Taiwan People's Party, cleared parliament after lawmakers rejected a plan submitted by President Lai Ching-te's government.

The approved plan allocates NT$240 billion over six years and will be included in the annual budget. Lai's government had sought up to NT$210 billion, or $6.6 billion, in a special budget for Taiwan-made unmanned vehicles, including coastal surveillance, attack and surface drones.

After initially insisting on an annual spending cap of NT$40 billion, the Kuomintang agreed to allow some flexibility. It also accepted that the defence ministry would handle the drone procurement process.

Premier Cho Jung-tai, who heads the Cabinet, said he would carefully weigh whether the bill met Taiwan's national security needs and its strategy for developing local drone and unmanned vehicle industries.

Kuomintang lawmaker Hsu Chiao-hsin said before the vote that Taiwan should encourage localisation and domestic production and support manufacturers able to provide non-Chinese supply chains, cybersecurity and stable growth.

US calls for Taiwan to pass the drone bill had intensified in recent weeks. Republican lawmaker Young Kim said during a Taipei visit last month that the wars in Ukraine and Iran showed Taiwan needed to buy and build drones at a large scale.

China claims Taiwan as part of its territory and has threatened to seize it by force. Taiwan remains heavily reliant on US arms sales and is under pressure from Washington to spend more on its own security.

Lai's government has earmarked a record NT$1.1 trillion in defence spending for 2027, accounting for more than 3 percent of GDP.