Lai unveils plan to budget US$40 billion to bolster Taiwan's defense

Taipei, Nov. 26 (CNA) President Lai Ching-te (賴清德) on Wednesday proposed a NT$1.25 trillion (US$39.85 billion) special defense budget to fund the construction of a multilayered "T-Dome" air defense network and strengthen Taiwan's overall defense posture over the next eight years.

Speaking at the Presidential Office, Lai said the T-Dome will provide low-, mid- and high-altitude air defense, incorporate artificial intelligence to improve detection and decision-making, and enhance Taiwan's ability to intercept threats to protect military assets, critical infrastructure and civilians.

According to Lai, the Ministry of National Defense (MND) has completed a draft provision for the budget, which is set to run from 2026 to 2033.

Local media reported in September that the ministry had already submitted the draft provision to the Cabinet for review. The proposal will then require Cabinet approval before being sent to the Legislature for consideration.

Defense Minister Wellington Koo (顧立雄) said that to build the T-Dome, the military plans to expand the number and types of air defense and anti-ballistic missiles in its arsenal and integrate them with early-warning and battle-management radar systems.

He added that newly acquired missiles will work alongside existing MIM-104 Patriot systems to increase intercept altitudes, widen coverage areas and improve defenses against missiles with mid-flight maneuverability.

Koo said the budget will also fund the development of an "AI-enabled battlefield intelligence and decision-support module" capable of providing real-time threat forecasting, battlefield visualization and recommendations to help commanders make quicker decisions.

The budget will also be used to procure unmanned systems, as well as precision munitions for use against enemy forces during amphibious landings and deep-strike operations. Both man-portable and vehicle-mounted armor-piercing missile systems will also be acquired, he added.

Koo said Taiwan aims to accelerate the procurement through cooperation with the United States, which will help the military obtain urgently needed weapons and integrate emerging technologies more quickly.

Domestically, the special budget is expected to generate more than NT$400 billion in production value and create about 90,000 jobs across supply chains, Koo said.

Asked whether the timing of the budget proposal was linked to Monday's call between Chinese President Xi Jinping (習近平) and U.S. President Donald Trump -- during which Xi reportedly underscored the importance of China's "reunification" with Taiwan -- Lai said the two events were not connected.

"The special budget was earmarked based on the needs to ensure Taiwan's security and social stability and safeguard its people's free and democratic way of life," Lai said.

He also rejected suggestions that the proposal was related to Taipei's ongoing tariff discussions with Washington, saying the special budget is intended to demonstrate Taiwan's determination to defend the homeland and contribute to peace and stability in the Indo-Pacific region.