US awards nearly $700M contract to build advanced surface-to-air missile systems for Taiwan

The US has approved a $698.94 million contract to build the National Advanced Surface-to-Air Missile System (NASAMS) for Taiwan, a statement by the Pentagon said.

Washington has tasked defense firm Raytheon with producing equipment related to NASAMS that Taiwan has ordered, according to a recent notice issued by the US Defense Secretary on Monday.

According to the contract, "NASAMS fire units" will be manufactured in Tewksbury, Massachusetts, and are expected to be completed by Feb. 28, 2031.

Washington had approved the sale of three NASAMS to Taiwan last year.

According to the Focus Taiwan news website, Taiwan's Defense Ministry said the missile system can perform active surveillance, manage firing operations, and integrate intelligence.

The ministry added that when NASAMS is combined with Taiwan's existing medium- and long-range air defense missiles, it can "form a multi-layered air defense network, enhancing homeland security."

For the fiscal year 2026, the ministry's budget allocated approximately $1.14 billion for the purchase of an unspecified number of NASAMS units, along with related equipment and training.

The spending plan is scheduled to run from 2024 through 2030.

The latest sale came after the administration of US President Donald Trump approved a possible sale of a $330 million package for Taiwan's non-standard components, as well as spare and repair parts for F-16 and C-130 military aircraft.

This was the first arms sale to Taiwan by the second Trump administration, triggering strong protests by China.