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US approves contract to build advanced missile systems for Taiwan

(MENAFN) The United States has approved a $698.94 million contract to produce components for the National Advanced Surface-to-Air Missile System (NASAMS) destined for Taiwan, the Pentagon announced.

According to a notice issued Monday by the US Defense Secretary, defense contractor Raytheon has been tasked with manufacturing NASAMS-related equipment ordered by Taipei. The contract specifies that the “NASAMS fire units” will be produced in Tewksbury, Massachusetts, with completion expected by Feb. 28, 2031.

Washington authorized the sale of three NASAMS units to Taiwan last year.

Taiwan’s Defense Ministry said the NASAMS platform is capable of conducting active surveillance, coordinating firing operations, and integrating intelligence data. When combined with the island’s existing medium- and long-range air defense missiles, the system can “form a multi-layered air defense network, enhancing homeland security,” the ministry said, as reported by Focus Taiwan.

For fiscal year 2026, Taiwan allocated approximately $1.14 billion for the acquisition of an unspecified number of NASAMS units as well as associated equipment and training. The procurement program is slated to run from 2024 through 2030.

The contract follows the Trump administration’s approval of a separate potential $330 million package for Taiwan covering non-standard components and spare and repair parts for F-16 and C-130 aircraft—its first arms sale to the island during President Donald Trump’s second term. The move prompted strong objections from China.

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