Taiwanese President Lai Ching-te has unveiled Taipei’s plan to increase its supplementary defense budget to $40 billion in an op-ed published by The Washington Post.
According to Lai, the sum will fund Taiwan’s purchase of new weapons from the United States and accelerate the development of T-Dome, an integrated defense system that would protect the Asian nation from enemy missiles, rockets, drones and combat aircraft.
What Defense Measures Did President Lai Announce?
In August, Lai approved a $20.29 billion defense budget for 2025. In the op-ed, he wrote that Taiwan will raise defense spending to 3.3 percent of gross domestic product next year and then to 5 percent by 2030. He said the goal is to increase deterrence by raising the cost of aggression for China.
According to Taiwan’s Defense Minister Wellington Koo, Taipei already held preliminary talks with the U.S. about the proposed weapon sale.
In addition, the president shared plans to strengthen its defense supply chain by tapping into the nation’s domestic manufacturing capabilities and bolstering partnerships with like-minded countries to enable the rapid deployment of advanced systems against emerging threats.
He also emphasized the role of deeper cooperation with allies to reinforce deterrence across the Indo-Pacific. According to Lai, Taipei will pursue closer coordination in maritime, cyber and other domains with trusted partners and allies across the region.
What Is T-Dome?
Lai first announced Taipei’s plan to build a T-Dome, which the president described as a “multi-layered defence, high-level detection and effective interception,” in October. Sources with knowledge of the project compared the planned T-Dome to Israel’s Iron Dome, an air defense system built in 2023 to intercept short-range weapons.