Taiwan will jointly manufacture a missile and an underwater drone with a U.S. company for the first time, officials said on Thursday (September 18, 2025), as Taipei seeks to boost domestic weapons and ammunition production.

The democratic island faces the constant threat of an invasion by China, which claims it is part of its territory, and is under U.S. pressure to spend more on its own defence.

Taiwan’s National Chung-Shan Institute of Science and Technology (NCSIST) agreed earlier this year with U.S. defence firm Anduril to jointly make the company’s Barracuda-500, a low-cost, autonomous cruise missile.

On Thursday, NCSIST and Anduril signed another agreement to co-produce the company’s underwater drone.

These are Taiwan’s first such agreements with a foreign company, NCSIST president Li Shih-chiang told AFP.

“Our purpose is if in the warfare, even the blockade, we can manufacture every weapon we need to protect ourselves,” Mr. Li said on the sidelines of the Taipei Aerospace and Defense Technology Exhibition, where the Barracuda is on display.

Anduril’s Taiwan head Alex Chang said the focus of the joint cooperation was on “mass producibility” and making local production sustainable.

The company would “work very closely” with the United States and Taiwan, Mr. Chang told AFP.