November 20, 2025 | 02:49 pm
TEMPO.CO, Jakarta - Taiwan has received a contract approval for the construction of the National Advanced Surface-to-Air Missile System (NASAMS) air defense system worth $698.94 million from the United States, according to a statement from the U.S. Department of Defense, as reported by Anadolu on Monday, November 17. Washington has assigned Raytheon, a defense company under RTX, to produce equipment related to the system.
According to the statement, the NASAMS launcher units will be made in Tewksbury, Massachusetts, with a target completion date of February 28, 2031. This sale continues Washington's decision last year to approve three NASAMS units as part of Taiwan's $2 billion arms package.
Defense Priority and Taiwan's Budget
According to a Focus Taiwan report, the Taiwan Ministry of Defense stated that NASAMS is capable of active surveillance, managing shooting operations, and integrating intelligence. Combined with the medium- and long-range air defense missiles they already have, the system can form a layered air defense network.
Taiwan has allocated approximately $1.14 billion of its 2026 defense budget to purchase NASAMS units, along with the necessary equipment and training. The spending plan runs from 2024 to 2030.
TRT World reported that the NASAMS, now confirmed to be sold to Taiwan, is a medium-range air defense system that Ukraine has used to counter Russian attacks. Demand for this RTX-made system is increasing. In the Indo-Pacific region, only Australia and Indonesia currently operate NASAMS.
The U.S. Department of Defense stated that the contract with RTX is a firm fixed-price contract with a deadline of February 2031. "Fiscal 2026 foreign military sales (Taiwan) funds in the amount of $698,948,760 were obligated," the statement said.
Tension with China
This is the second U.S. sale to Taiwan in a week. Previously, the Donald Trump administration had approved the sale of F-16 and C-130 aircraft spare parts worth $330 million, the first sale to Taiwan during his second term, which sparked strong protests from China.
Tensions in East Asia are also increasing. Reports indicate that Chinese coast guard ships have re-entered disputed waters in the East China Sea. Japan deployed fighter jets after China flew drones between Taiwan and Yonaguni Island. Responding to the situation, Taiwan Defense Minister Wellington Koo said, "China should abandon its thinking of using force to resolve things."
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