The U.S. Army has signed a new $896.7 million production contract with Lockheed Martin to supply ATACMS guided missile systems to Taiwan, significantly strengthening the island’s defense capabilities.
Initiated under an “undefinitized contract action” to accelerate the acquisition process, the first tranche of $439.3 million is funded directly through Taiwan’s Foreign Military Sales (FMS) program.
Long-Term Production Plan
Production activities, to be conducted at Lockheed Martin’s facilities in Grand Prairie, Texas, are scheduled for completion by February 28, 2031. The delivery of these systems is crucial to Taiwan’s strategy of modernizing its long-range precision strike capabilities.
The process, managed by the U.S. Army Contracting Command, features Lockheed Martin as the sole bidder, assuming full operational responsibility for the project. Managed by the command based at Redstone Arsenal, Alabama, this procurement program is included in the 2026 fiscal year budget. These ATACMS systems being acquired by Taiwan aim to enhance deterrence capabilities in the region.
This step is considered part of Taiwan’s strategy to increase its long-range precision strike capability; the nation had previously decided to modernize its land-based fire support through the procurement of the M109A7 Paladin self-propelled howitzer. In addition to such foreign acquisitions, Taiwan also prioritizes its domestic missile development capacity to gradually reduce its dependency on external sources.
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Source : C4Defence– U.S. Department of Defense
