Taiwan Today

Taiwan is stepping up homegrown capabilities in its defense and space industries.

Attending the launch ceremony of a high-speed minelayer and the stealth missile corvette Ta Jiang last December at Lungteh Shipbuilding yard in northeastern Taiwan’s Yilan County, President Tsai Ing-wen (蔡英文) lauded the country’s progress in expanding indigenous defense capabilities. “Pursuing autonomy in national defense is a top policy priority, and domestic warship production has yielded exciting results over the past four years,” she said. The corvette that prompted her remarks is an upgraded version of Tuo Jiang, the first locally constructed ship of its kind and the site where Tsai took her first inspection tour as commander-in-chief in 2016.

During her second-term inaugural address in May of last year, Tsai announced her intentions to take Taiwan’s national defense to the next level, naming it as one of the six core strategic industries targeted for accelerated development. “We will push harder to promote technological integration between the military and civilian sectors while stimulating private sector production capabilities and advancing the aviation and space industries,” she said.

The initiative is already paying dividends. Just a few days before the Lungteh event, Tsai attended the launch of two Coast Guard Administration (CGA) patrol vessels at Jong Shyn Shipbuilding Group’s yard in Kaohsiung. The southern port city is also home to the country’s largest shipbuilder, CSBC Corp., Taiwan, from whose headquarters Tsai announced the commencement of a submarine-building project last November. The company transitioned from a state-owned business to a private entity in 2008 and is now a major force behind the country’s ongoing efforts to accelerate indigenous weapons systems development. In addition to endeavors by CSBC, Jong Shyn and Lungteh, Taiwan is working to produce its own next-generation jet trainers and guided missiles, starting with the acquisition of key relevant technologies.

Ripple Effect

Investment in defense also comes with a wealth of broader economic benefits, according to Su Tzu-yun (蘇紫雲‬), head of the Division of National Defense Resources and Industries in the Taipei City-based Institute for National Defense and Security Research. The Ministry of National Defense (MND)-backed think tank was established in 2018 to offer policy analyses and strategic assessments on domestic and international security issues. “The sector’s specialized skills, materials, supplies and technology all have potential applications in other areas,” said Su, who also teaches in the Graduate Institute of Strategic Studies and International Affairs at University of the Armed Forces in northern Taiwan’s Taoyuan City.

Su cited submarines as an example, which require high-level engineering skills to build. “Not counting the design phase, construction of a single vessel takes around four million hours of labor,” he said. “But the estimated NT$250 billion (US$8.93 billion) cost of the ongoing CSBC project is expected to generate at least 1.8 times the value of initial investment as resulting technological advancements are applied to products like civil airplanes and electric vehicles.”

Similar spillover effects are expected from defense projects such as CGA’s patrol vessel development initiative announced in 2018. According to the Cabinet-level Ocean Affairs Council, it will produce more than 100 ships of different types and sizes over the course of a decade for NT$42.6 billion (US$1.52 billion), bolstering national sovereignty and helping safeguard fishing rights. Also set to have far-ranging benefits is the T-5 Brave Eagle advanced jet trainer program conducted by Taichung City-based Aerospace Industrial Development Corp. in central Taiwan, with initial models of the aircraft soon to be delivered. The leading airplane, aeroengine and avionics manufacturer works closely with the MND-overseen National Chung-Shan Institute of Science and Technology (NCSIST) in Taoyuan, which offers R&D and technology transfer services.

One of the institute’s biggest projects currently in development is a smart missile system. “The missiles are designed to be as compact as possible while performing at maximum efficiency for extended durations of time,” Su said, praising NCSIST’s efforts to advance Taiwan’s asymmetric warfare capabilities. Such defenses are critical to maintaining peace and stability in the Indo-Pacific, he added.

The country also boasts industrial advantages in production of nonlethal military goods such as functional fabrics and communications hardware. This achievement is largely due to the Defense Industry Development Act, which was promulgated in 2019 to combine the strengths of the public and private sectors on R&D, manufacture and logistics of weapons and equipment.

Final Frontier

A space development act drafted by the Ministry of Science and Technology (MOST) and approved by the Cabinet in February is likewise set to boost related industries while meeting Premier Su Tseng-chang’s (蘇貞昌) vision of launching Taiwan’s national power beyond the terrestrial surface. The law is a clear indication of the country’s commitment to advancing its space economy, said Yu Shiann-jeng (余憲政), acting director-general of National Space Organization (NSPO). Based at Hsinchu Science Park, NSPO is one of eight institutes operating under the MOST’s National Applied Research Laboratories (NARL). Other NARL organizations like Taiwan Instrument Research Institute and Taiwan Semiconductor Research Institute, also located at the Hsinchu tech hub, work together with NSPO in areas spanning physics, precision machinery and information and communication technology.

Taiwan’s space program began in 1991, when NSPO’s preparatory office opened as part of phase one of the Long-term National Space Technology Development Program. To date the program has resulted in launches of a series of satellites, beginning with Formosat-1 in 1999. The latest to enter orbit was Formosat-7, a constellation of six advanced climate-monitoring satellites jointly developed by Taiwan and the U.S. that were sent up in 2019 from Kennedy Space Center in Florida, while the in-progress Triton and Formosat-8 projects are scheduled for takeoff starting in mid-2022. “We’re speeding up the pace of our space program, with plans to launch a new satellite each year,” Yu said. The government has allocated NT$25.1 billion (US$896 million) to the phase running from 2019 to 2028, following the NT$25.9 billion (US$925 million) budget of the previous 15-year stage.

While the program initially focused on capacity building and accumulating experience through collaboration with foreign companies and research organizations, the second phase marked the start of projects designed and built locally. The breakthrough result was the remote-sensing Formosat-5 satellite launched in 2017. “Its success built strong confidence in our space tech capabilities,” Yu said. An increasingly large number of local firms are now able to manufacture key components such as electronic devices, flight control systems, optical instruments and solar panels. “Through our sets of successful homegrown satellites, our components and integrated systems are gaining global recognition, paving the way for expanded applications at home and abroad,” Yu added.

Looking to cultivate future talent, the NSPO has maintained close connections with academic institutions such as National Central University in Taoyuan. At the university’s Department of Space Science and Engineering, students can enroll in complete curriculums from bachelor to doctoral levels. “In preparation for the upcoming era of spaceflight, it’s essential to build a strong base of scientists and engineers in areas encompassing satellites, rockets and ground-based facilities,” Yu said.

According to Yu, Taiwan has become a leading regional force in defense and space technologies on the strength of three decades of infrastructure and personnel development as well as support from global powers like Canada, France and the U.S. “With regional neighbors like the Philippines and Vietnam additionally expressing interest in collaboration, Taiwan is perfectly situated to continue making innovative contributions via international exchanges while strengthening its industrial competitive edge in the world,” he said. 

Write to Pat Gao at cjkao@mofa.gov.tw