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US Supports Taiwan’s Defense Industry Amid China’s Aggression, US Envoy Says
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Raymond Greene, director of the American Institute in Taiwan (AIT), attends a press conference in Taipei on Sept. 4, 2024. (Walid Berrazeg/AFP via Getty Images)
By Frank Fang
1/26/2026Updated: 1/26/2026

TAIPEI, Taiwan—The top U.S. representative to Taiwan said the Trump administration is committed to bolstering the island’s self-defense capabilities, highlighting partnerships between U.S. and Taiwanese defense and technology companies aimed at expanding Taiwan’s domestic defense industry.

Raymond Greene, director of the American Institute in Taiwan (AIT), delivered a speech at a local seminar on Jan. 22. The event, titled “Strengthening Resilience: Defense as the Engine of Development,” was hosted by the Institute for National Defense and Security Research, a think tank established by the Taiwanese Ministry of National Defense.

“[The United States is] working with Taiwan industry to expand its domestic defense industrial base,” he said.

“These defense and technology partnerships not only will boost Taiwan’s self-defense capability, but will also expand Taiwan’s manufacturing capabilities, provide jobs, and pivot Taiwan to becoming a powerhouse in trusted global defense supply chains.”

Greene’s remarks come as Taiwan braces for a possible military attack from the Chinese regime, which considers the self-governing island part of its territory. Last month, the Trump administration approved an $11.1 billion arms sale to Taiwan, the largest U.S. weapons package ever proposed for the island.

U.S. defense company Northrop Grumman has established a medium-caliber ammunition test range in Taiwan, he said, which allows the island’s defense ministry to “test ammunition to global industry standards, advancing indigenous development projects through the transfer of technology, proprietary procedures, and expert training.”

Northrop Grumman, which has agreed to sell anti-tank mine-laying systems to Taiwan, is partnered with Taiwan’s National Chung-Shan Institute of Science and Technology, a quasi-defense ministry research agency. The partnership was announced in September 2025, when the two sides signed a memorandum of understanding to explore collaboration on air and missile defense modernization for the Taiwanese Defense Ministry, according to a statement from Northrop Grumman.

Also in September 2025, Northrop Grumman announced that it had teamed up with Taiwanese companies to bring advanced radar capabilities to Taiwan, according to a statement.

Greene also noted that U.S. defense technology company Shield AI has “invested heavily” in Taiwan’s supply chain, sourcing tens of millions of Taiwanese components and products.

In September 2025, Shield AI signed a teaming agreement with Taiwanese government defense contractor Aerospace Industrial Development Corp. (AIDC). According to a statement, an AIDC spokesperson said teaming with Shield AI “will strengthen Taiwan’s defense and deterrence capabilities, and supercharge Taiwan’s local drone and aerospace industry.”

U.S. drone-maker Anduril Industries has “implemented a strategic supply chain initiative in Taiwan to find multi-source suppliers for key components to enhance global supply chain resilience across products such as the Ghost-X UAS,” Greene said.

Taiwan received the first batch of Anduril Industries’ Altius-600M attack drones purchased from the United States in August 2025, according to Taiwan’s national media, the Central News Agency, which quoted Taiwanese Defense Minister Wellington Koo.

Anduril Industries also has a partnership with NCSIST. According to a statement in August 2025, Palmer Luckey, founder of Anduril Industries, was quoted as saying that the partnership would allow them to “integrate AI, autonomy, and advanced systems at a speed that matches the threats we face.”

Leveraging U.S. expertise in artificial intelligence alongside Taiwan’s manufacturing capacity and hardware could enable the development of advanced edge-computing and embodied-AI applications for drones, air defense, and command-and-control platforms, Greene said.

“The objective of all of these efforts is to establish conditions for dialogue, free from coercion. The United States has always insisted on the peaceful resolution of our cross-strait differences,” he said.

“Taiwan’s actions to restore the cross-strait military balance will remove the use of force as an option and give Taiwan the confidence to engage in dialogue at the appropriate time.”

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Frank Fang is a Taiwan-based reporter. He covers U.S., China, and Taiwan news. He holds a master's degree in materials science from Tsinghua University in Taiwan.

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