Taiwan’s president Lai Ching-te has ordered sweeping security reforms after a knife and smoke grenade attack killed three people and injured 11 in Taipei. The suspect, Chang Wen, 27, set fires and struck multiple sites before dying from a fall.
Published On 20 Dec 202520 Dec 2025
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Kitsch Liao, associate director at the Atlantic Council Global China Hub, says Beijing’s reaction to the largest US arms sale to Taiwan is an information warfare tactic.
Published On 18 Dec 202518 Dec 2025
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Dec. 18 (UPI) — The United States has approved a massive $11.1 billion arms deal with Taiwan, the self-government Asian island announced Thursday.
The U.S. Congress was informed of the sale on Wednesday, the president’s office said in a statement.
The package includes eight items, such as HIMARS rocket systems, TOW missiles, Javelin anti-tank missiles, anti-armor loitering munition systems, spare attack helicopter parts and the Taiwan Tactical Network military communication platform and Tactical Awareness Kit, among other lethal equipment.
Taiwan’s foreign ministry said in a statement that it “welcomed” the announcement and expressed its “sincere appreciation for the United States’ long-standing support for regional security and Taiwan’s self-defense.
The arms sale is the second to Taiwan of President Donald Trump’s second administration and comes as China increases its military pressure on the self-governing island.
Hours prior to the deal being announced, Taiwan’s Ministry of National Defense said 40 sorties of Chinese fighter jets and eight navy vessels were detected operating around the island. Of the fighter jets, 26 had crossed the median line and entered Taiwan’s northern, central, southwestern and eastern Air Defense Identification Zone.
A day earlier, 23 sorties of fighter jets were detected and nine fighter jets and seven navy vessels were spotted a day before that.
China views Taiwan as a breakaway province and has vowed to take it back by force if necessary. Taiwan is a self-governing island that Beijing has never ruled.
The office of Taiwanese President Lai Ching-te said the arms deal highlights the close partnership between the two countries and demonstrates “the importance the U.S. government attaches to Taiwan’s national defense needs.”
Presidential Office spokesperson Karen Kuo added that due to increasing security concerns, Taiwan will raise defense spending to more than 3% of GDP next year and aims for it to be 5% by 2030.
“Taiwan will continue to reform national defense, strengthen whole-of-society defense resilience, demonstrate our determination for self-defense and maintain peace through strength,” Kuo said.
The U.S.-Taiwan Business Council said it was a record single U.S. security package for Taiwan and was in response to the threat posed by China and a potential Beijing ground invasion.
“We continue to see the prioritization of platforms and munitions that address a D-Day-style attack on the island,” USTBC President Rupert Hammond-Chamber said in a statement.
Huge US arms package for Taiwan includes HIMARS rocket systems, howitzer artillery, antitank missiles, and drones.
Published On 18 Dec 202518 Dec 2025
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The United States has approved $11.1bn in arms sales to Taiwan, one of Washington’s largest-ever weapons packages for the self-ruled island, which Beijing has promised to unify with mainland China.
The US State Department announced the deal late on Wednesday during a nationally televised address by President Donald Trump.
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Weapons in the proposed sale include 82 High Mobility Artillery Rocket Systems, or HIMARS, and 420 Army Tactical Missile Systems, or ATACMS – worth more than $4bn – defence systems that are similar to what the US had been providing Ukraine to defend against Russian aerial attacks.
The deal also includes 60 self-propelled howitzer artillery systems and related equipment worth more than $4bn and drones valued at more than $1bn.
Other sales in the package include military software valued at more than $1bn, Javelin and TOW missiles worth more than $700m, helicopter spare parts worth $96m and refurbishment kits for Harpoon missiles worth $91m.
In a series of separate statements announcing details of the weapons deal, the Pentagon said the sales served US national, economic and security interests by supporting Taiwan’s continuing efforts to modernise its armed forces and to maintain a “credible defensive capability”.
Taiwan’s defence ministry and presidential office welcomed the news while China’s foreign ministry did not immediately respond to a request for comment from the Reuters news agency.
Washington’s huge sale of arms to Taiwan will likely infuriate China, which claims Taiwan is part of its territory and has threatened to use force to bring it under its control.
“The United States continues to assist Taiwan in maintaining sufficient self-defence capabilities and in rapidly building strong deterrent power,” Taiwan’s defence ministry said in a statement.
Taiwan presidential office spokesperson Karen Kuo said Taiwan would continue to reform its defence sector and “strengthen whole-of-society defence resilience” to “demonstrate our determination to defend ourselves, and safeguard peace through strength”.
China’s Taiwan Affairs Office said on Wednesday that it opposed efforts by the US Congress to pass bills “related to Taiwan and firmly opposes any form of military contact between the US and Taiwan”.
“We urge the US to abide by the one China principle and the provisions of the three Sino-US joint communiques : Stop ‘arming Taiwan’, stop reviewing relevant bills, and stop interfering in China’s internal affairs,” the office’s spokesperson Zhu Fenglian said in a statement.
Zhu said Taiwan’s political leaders were pursuing “independence”, and were “willing to let external forces turn the island into a ‘war porcupine’,” which could result in the population becoming “cannon fodder” and “slaughtered at will, which is despicable”.
Taiwan’s President William Lai Ching-te last month announced a $40bn supplementary defence budget, to run from 2026 to 2033, saying there was “no room for compromise on national security”.
In October, a small electronics manufacturer in the western Indian state of Gujarat shipped its first batch of chip modules to a client in California.
Kaynes Semicon, together with Japanese and Malaysian technology partners, assembled the chips in a new factory funded with incentives under Indian Prime Minister Narendra Modi’s $10bn semiconductor push announced in 2021.
Modi has been trying to position India as an additional manufacturing hub for global companies that may be looking to expand their production beyond China, with limited success.
One sign of that is India’s first commercial foundry for mature chips that is currently under construction, also in Gujarat. The $11bn project is supported by technology transfer from a Taiwanese chipmaker and has onboarded the United States chip giant Intel as a potential customer.
With companies the world over hungering for chips, India’s entry into that business could boost its role in global supply chains. But experts caution that India still has a long way to go in attracting more foreign investment and catching up in cutting-edge technology.
Semiconductor chips are designed, fabricated in foundries, and then assembled and packaged for commercial use. The US leads in chip design, Taiwan in fabrication, and China, increasingly, in packaging.
The upcoming foundry in Gujarat is a collaboration between India’s Tata Group, one of the largest conglomerates in the country, and Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC), which is assisting with the plant’s construction and technology transfer.
On December 8, Tata Electronics also signed an agreement with Intel to explore the manufacturing and packaging of its products in Tata’s upcoming facilities, including the foundry. The partnership will address the growing domestic demand.
Last year, Tata was approved for a 50 percent subsidy from the Modi government for the foundry, along with additional state-level incentives, and could come online as early as December 2026.
Even if delayed, the project marks a pivotal moment for India, which has seen multiple attempts to build a commercial fab stall in the past.
The foundry will focus on fabricating chips ranging from 28 nanometres (nm) to 110nm, typically referred to as mature chips because they are comparatively easier to produce than smaller 7nm or 3nm chips.
Mature chips are used in most consumer and power electronics, while the smaller chips are in high demand for AI data centres and high-performance computing. Globally, the technology for mature chips is more widely available and distributed. Taiwan leads production of these chips, with China fast catching up, though Taiwan’s TSMC dominates production for cutting-edge nodes below 7nm.
“India has long been strong in chip design, but the challenge has been converting that strength into semiconductor manufacturing,” said Stephen Ezell, vice president for global innovation policy at the Washington, DC-based Information Technology and Innovation Foundation (ITIF).
“In the past two to three years, there’s been more progress on that front than in the previous decade – driven by stronger political will at both the central and state levels, and a more coordinated push from the private sector to commit to these investments,” Ezell told Al Jazeera.
More than half of the Modi government’s $10bn in semiconductor incentives is earmarked for the Tata-PSMC venture, with the remainder supporting nine other projects focused mainly on the assembly, testing and packaging (ATP) stage of the supply chain.
These are India’s first such projects – one by Idaho-based Micron Technology, also in Gujarat, and another by the Tata Group in the northeastern Assam state. Both will use in-house technologies and have drawn investments of $2.7bn and $3.3bn, respectively.
The remaining projects are smaller, with cumulative investments of about $2bn, and are backed by technology partners such as Taiwan’s Foxconn, Japan’s Renesas Electronics, and Thailand’s Stars Microelectronics.
“ATP units offer a lower path of resistance compared to a large foundry, requiring smaller investments – typically between $50m and $1bn. They also carry less risk, and the necessary technology know-how is widely available globally,” Ashok Chandak, president of the India Electronics and Semiconductor Association (IESA), told Al Jazeera.
Still, most of the projects are behind schedule.
Micron’s facility, approved for incentives in June 2023, was initially expected to begin production by late 2024. However, the company noted in its fiscal 2025 report that the Gujarat facility will “address demand in the latter half of this decade”.
Approved in February 2024, the Tata facility was initially slated to be operational by mid-2025, but the timeline has now been pushed to April 2026.
When asked for reasons behind the delays, both Micron and Tata declined to comment.
One exception is a smaller ATP unit by Kaynes Semicon, which in October exported a consignment of sample chip modules to an anchor client in California – a first for India.
Another project by CG Semi, part of India’s Murugappa Group, is in trial runs, with commercial production expected in the coming months.
The semiconductor projects under the Tata Group and the Murugappa Group have drawn public scrutiny after Indian online news outlet Scroll.in reported that both companies made massive political donations after they were picked for the projects.
As per Scroll.in, the Tata Group donated 7.5 billion rupees ($91m) and 1.25 billion rupees ($15m), respectively, to Modi’s Bharatiya Janata Party (BJP) just weeks after securing government subsidies in February 2024 and ahead of national elections. Neither group had made such large donations to the party before. Such donations are not prohibited by law. Both the Tata Group and the Murugappa Group declined to comment to Al Jazeera regarding the reports.
The upcoming projects in India – both the foundry and the ATP units – will primarily focus on legacy, or mature, chips sized between 28nm and 110nm. While these chips are not at the cutting-edge of semiconductor technology, they account for the bulk of global demand, with applications across cars, industrial equipment and consumer electronics.
China dominates the ATP segment globally with a 30 percent share and accounted for 42 percent of semiconductor equipment spending in 2024, according to DBS Group Research.
India has long positioned itself as a “China Plus One” destination amid global supply chain diversification, with some progress evident in Apple’s expansion of its manufacturing base in the country. The company assembles all its latest iPhone models in India, in partnership with Foxconn and Tata Electronics, and has emerged as a key supplier to the US market this year following tariff-related uncertainties over Chinese shipments.
Its push in the ATP segment, however, is driven largely by the need to meet the growing domestic demand for chips, anticipated to surge from $50bn today to $100bn by 2030.
“Globally, too, the market will expand from around $650bn to $1 trillion. So, we’re not looking at shifting manufacturing from China to elsewhere. We’re looking at capturing the incremental demand emerging both in India and abroad,” Chandak said.
India’s import of chips – both integrated circuits and microassemblies – has jumped in recent years, rising 36 percent in 2024 to nearly $24bn from the previous year. An integrated circuit (IC) is a chip serving logic, memory or processing functions, whereas a microassembly is a broader package of multiple chips performing combined functions.
The momentum has continued this year, with imports up 20 percent year-on-year, accounting for about 3 percent of India’s total import bill, according to official trade data. China remains the leading supplier with a 30 percent share, followed by Hong Kong (19 percent), South Korea (11 percent), Taiwan (10 percent), and Singapore (10 percent).
“Even if it’s a 28 nm chip, from a trade balance perspective, India would rather produce and package it domestically than import it,” Ezell of ITIF said, adding that domestic capability would enhance the competitiveness of chip-dependent industries.
The Modi government’s support for the chip sector, while unprecedented for India, is still dwarfed by the $48bn committed by China and the $53bn provisioned under the US’s CHIPS Act.
To achieve scale in the ATP segment for meaningful import substitution – and to advance towards producing chips smaller than 28nm – India will need continued government support, and there is a second round of incentives already in the works.
“The reality is, if India wants to compete at the leading edge of semiconductors, it will need to attract a foreign partner – American or Asian – since only a handful of companies globally operate at that level. It’s highly unlikely that a domestic firm will be competitive at 7nm or 3nm anytime soon,” Ezell said.
According to him, India needs to continue focusing on improving its overall business environment – from ensuring reliable power and infrastructure to streamlining regulations, customs and tariff policies.
India’s engineers make up about a fifth of the global chip design workforce, but rising competition from China and Malaysia to attract multinational design firms could erode that edge.
In its latest incentive round, the Indian government limited benefits to domestic firms to promote local intellectual property – a move that, according to Alpa Sood, legal director at the India operations of California-based Marvell Technology, risks driving multinational design work elsewhere.
“India already has a thriving chip design ecosystem strengthened by early-stage incentives from the government. What we need, to further accelerate and build stronger R&D muscle – is incentives that mirror competing countries like China [220 percent tax incentives] and Malaysia [200 percent tax incentives]. This will ensure we don’t lose the advantage we’ve built over the years,” Sood told Al Jazeera.
Marvell’s India operations are its largest outside the US.
India’s upcoming chip facilities, while aimed at meeting domestic demand, will also export to clients in the US, Japan, and Taiwan. Though US President Donald Trump has threatened 100 percent tariffs on semiconductors made outside the US, none have yet been imposed.
A bigger concern for India-US engagement – so far limited to education and training – is Washington’s 50 percent tariff on India over its Russian crude imports. Semiconductors remain exempt, but the broader trade climate has turned uncertain.
“Over half the global semiconductor market is controlled by US-headquartered firms, making engagement with them crucial,” Chandak said. “Any alignment with these firms, either through joint ventures or technology partnerships – is a preferred option.”
The global chip race is accelerating, and India’s policies will need to keep pace to become a serious player amid growing geo-economic fragmentation.
“These new 1.7nm fabs are so advanced they even factor in the moon’s gravitational pull – it’s literally a moonshot,” Ezell said. “Semiconductor manufacturing is the most complex engineering task humanity undertakes – and the policymaking behind it must be just as precise.”
Legislation reflects Democrats’ efforts to seek tighter oversight of Trump administration’s military action.
The United States Senate has passed a $901bn bill setting defence policy and spending for the 2026 fiscal year, combining priorities backed by President Donald Trump’s administration with provisions designed to preserve congressional oversight of US military power.
The National Defense Authorisation Act (NDAA) was approved in a 77-20 vote on Wednesday with senators adopting legislation passed by the House of Representatives last month. It now goes to Trump for his signature.
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Several provisions in the bill reflect efforts by Democratic lawmakers, supported by some Republicans, to constrain how quickly the Trump administration may scale back US military commitments in Europe.
The bill requires the Pentagon to maintain at least 76,000 US soldiers in Europe unless NATO allies are consulted and the administration determines that a reduction would be in the US national interest. The US typically stations 80,000 to 100,000 soldiers across the continent. A similar measure prevents reductions in US troop levels in South Korea below 28,500 soldiers.
Congress also reinforced its backing for Ukraine, authorising $800m under the Ukraine Security Assistance Initiative with $400m allocated for each of the next two years. A further $400m per year was approved to manufacture weapons for Ukraine, signalling continued congressional support for Kyiv and cementing Washington’s commitment to Europe’s defence.
The bill also reflects priorities aligned with the Trump administration’s national security strategy, which places the Asia Pacific at the centre of US foreign policy and describes the region as a key economic and geopolitical battleground.
In line with that approach, the NDAA provides $1bn for the Taiwan Security Cooperation Initiative, aimed at strengthening defence cooperation as the US seeks to counter China’s growing military influence.
The legislation authorises $600m in security assistance for Israel, including funding for joint missile defence programmes, such as the Iron Dome, a measure that has long drawn broad bipartisan support in Congress.
The NDAA increases reporting requirements on US military activity, an area in which Democrats in particular have sought greater oversight.
It directs the Department of Defense to provide Congress with additional information on strikes targeting suspected smuggling and trafficking operations in the Caribbean and the eastern Pacific, adding pressure on Defense Secretary Pete Hegseth to provide lawmakers with video footage of US strikes on alleged drug-smuggling boats operating in international waters near Venezuela.
Lawmakers moved to strengthen oversight after a September strike killed two people who had survived an earlier attack on their boat.
Some Democratic lawmakers said they were not briefed in advance on elements of the campaign, prompting calls for clearer reporting requirements.
The legislation repeals the 2003 authorisation for the US invasion of Iraq and the 1991 authorisation for the Gulf War. Supporters from both parties said the repeals reduce the risk of future military action being undertaken without explicit congressional approval.
The bill also permanently lifts US sanctions on Syria imposed during the regime of President Bashar al-Assad after the Trump administration’s earlier decision to temporarily ease restrictions. Supporters argue the move will support Syria’s reconstruction after al-Assad’s removal from power a year ago.
Other provisions align more closely with priorities advanced by Trump and Republican lawmakers under the administration’s America First agenda.
The NDAA eliminates diversity, equity and inclusion offices and training programmes within the Department of Defense, including the role of chief diversity officer. The House Armed Services Committee claims the changes would save about $40m.
The bill also cuts $1.6bn from Pentagon programmes related to climate change. While the US military has previously identified climate-related risks as a factor affecting bases and operations, the Trump administration and Republican leaders have said defence spending should prioritise immediate military capabilities.