Defense contractor RTX has secured a firm fixed-price Pentagon contract valued at $698,948,760 for the delivery of National Advanced Surface-to-Air Missile Systems to Taiwan. The structured agreement eliminates cost overrun risks while ensuring Taiwan receives battle-proven air defense technology by February 2031.
The contract covers three complete NASAMS medium-range air defense units that have demonstrated effectiveness in Ukrainian combat operations against Russian aerial threats. Taiwan will become only the third Indo-Pacific nation to deploy this sophisticated defensive platform, joining Australia and Indonesia. The funding comes from fiscal year 2026 foreign military sales allocations specifically designated for Taiwan, fulfilling commitments from a comprehensive $2 billion defense package announced last year.
Senior American diplomatic officials stationed in Taiwan have reinforced the permanence of bilateral security commitments through emphatic public statements. Speaking at a business community event, the top American representative declared that support for Taiwan is “rock solid” and enduring. The official emphasized that commitments manifest through tangible actions, particularly expanding defense industrial cooperation, supporting Taiwan’s goal of achieving peace through demonstrable strength.
The NASAMS contract confirmation arrives within days of another significant authorization worth $330 million for fighter aircraft components and parts. Together, these two approvals represent $1 billion in military equipment within a single week. The fighter parts deal marked the first weapons authorization since the new administration took office in January, generating appreciation from Taipei while provoking criticism from Beijing.
Regional security dynamics have deteriorated with Chinese coast guard operations near disputed East China Sea islands and Chinese drone flights through sensitive airspace between Taiwan and Japan, prompting military responses. Taiwan’s defense minister has called on China to renounce military force in dispute resolution. China maintains sovereignty claims over Taiwan that the island’s government categorically rejects. Chinese military forces conduct near-daily operations around Taiwan in what Taipei describes as “grey zone” tactics designed to exhaust defensive resources. Taiwan pursues comprehensive military modernization, including ambitious indigenous submarine programs to secure vital maritime routes. Despite lacking formal diplomatic relations, the United States remains legally bound to provide Taiwan with necessary defensive means, consistently drawing Beijing’s opposition.