Taiwan’s Ministry of National Defense is pursuing a major expansion of domestic defense production capacity through 2032, with an investment surpassing NT$14.15 billion to build or upgrade four factories and broaden lines for warhead bodies, ammunition components, explosives, optical gear, gas masks, and CBRN equipment.

The Armaments Bureau will implement upgrades across four facilities and introduce semi-automated and automated processes to boost output of war-related systems, strengthening wartime self-sufficiency for arms and related items.

This expansion follows a plan to consolidate diverse defense sectors under domestic production, aiming to ensure sustained ammunition supply and advanced defense capabilities during conflict.

Taiwan combines Thunderbolt-2000 rockets with HIMARS to create a versatile firepower mix, spanning shorter-range area fires to long-range precision strikes for varied operational needs.

Thunderbolt-2000 rockets will operate alongside MK-30/MK-45 systems, with HIMARS delivering up to 70 km range and other missiles reaching around 300 km, enabling complementary battlefield effects.

The funding for these defense projects has evolved from an Executive Yuan special defense budget, with adjustments by the Legislative Yuan, and subsequent inclusion in next year’s budget via supplementary and annual allocations.

Taiwan plans to produce Thunderbolt-2000 high-explosive rockets at the National Chungshan Institute of Science and Technology, dedicating over NT$691.7 million to supply rockets for MK-30 and MK-45 launchers.

In addition, the army will fund war-reserve Thunderbolt-2000 ammunition production to bolster counter-landing capabilities, produced through the same institute.

The procurement of 108 M1A2T Abrams tanks drives the creation of domestic production lines for 120mm tank rounds, building on existing 105mm capabilities through collaboration and local development.

Bids for a 120mm ammunition assembly system were sought last year as part of expanding domestic armor ammunition capabilities.

Budget allocations for the program scale up over time, with current-year funding around NT$328.8 million rising to over NT$1.52 billion next year and peaking near NT$4.13 billion in 2029 before completion in 2032.

The spending timeline shows peak funding between 2028 and 2030, culminating in a 2032 completion of the overall production-upgrade initiative.