Taiwan Says It Remains in Continuous Talks With US on Arms Sales as $14 Billion Package Stays Pending

Taiwan remains in continuous discussions with the United States over arms sales and has received repeated assurances that Washington's policy toward the island has not changed following the recent US-China summit, Taiwan's Defence Minister Wellington Koo said on September 29.

The comments come as Taiwan waits for a new US arms package worth about $14 billion, which US President Donald Trump has kept in abeyance for months. Taiwan is also dealing with delays in previously ordered American weapons, including 66 F-16V fighter jets ordered from Lockheed Martin in 2019.

For investors, the issue matters beyond geopolitics. The timing and size of Taiwan's defence procurement plans have implications for US aerospace and defence companies, weapons manufacturers and the wider supply chain.

Taiwan Says US Policy Has Not Changed

Koo told reporters in Taipei that Taiwan had repeatedly received explanations from the US side that its policy toward Taiwan remained unchanged.

He said discussions over ongoing military sales were continuing and that Taiwan had not received notification of any change in policy. He also stressed that individual arms-sales cases require concrete cooperation between the two sides.

The comments followed a meeting between Trump and Chinese President Xi Jinping in Washington.

Taiwan is watching the relationship closely because the United States is its most important international arms supplier despite the absence of formal diplomatic ties. Washington is also bound under the 1979 Taiwan Relations Act to make available to Taiwan the means to maintain a sufficient self-defence capability.

What Is Happening With the $14 Billion Arms Package?

Taiwan has been waiting for approval of a new package estimated at about $14 billion.

The package follows an approximately $11 billion arms package announced in December, described by Reuters as the largest such package for Taiwan at that time. Trump subsequently said in May that the newer package was being kept in abeyance after his meeting with Xi in Beijing.

The status of the $14 billion package remains important because Taiwan's military planning depends not only on the eventual approval of new purchases but also on the delivery of weapons already ordered.

Taiwanese officials have continued communicating with Washington about both issues rather than treating the pending package as a standalone transaction.

F-16V Deliveries Highlight the Existing Backlog

One of the clearest examples of Taiwan's procurement delays involves Lockheed Martin's F-16V fighter jets.

Taiwan ordered 66 F-16Vs in 2019. The aircraft feature upgraded avionics, weapons and radar systems. According to Taiwan's defence minister, production has progressed to a point where deliveries are possible, but the government is still coordinating with the US over the delivery schedule and compensation measures related to the delay.

Taiwanese media have reported that the first two aircraft are currently in Hawaii awaiting delivery to Taiwan, although Koo did not confirm a specific delivery date.

For Lockheed Martin and other defence contractors, this illustrates an important distinction between announcing an arms sale and delivering the equipment.

Large defence programmes can extend across several years because of production capacity, component availability, testing, training and scheduling.

Why the US-China Summit Matters

Taiwan's latest comments came shortly after Trump and Xi met in Washington.

The summit did not result in Taiwan announcing a change to its arms procurement plans. Instead, Taiwanese officials said they had received assurances from US officials that Washington's policy had not changed.

A senior Taiwanese diplomat, Deputy Foreign Minister Chen Ming-chi, said on September 27 that the US understood Taiwan's defence requirements and that communication between the two sides remained continuous. US Ambassador to China David Perdue had also said there had been no change in US policy toward Taiwan, including arms sales.

At the same time, China has repeatedly opposed US arms sales to Taiwan and has called for them to stop. Beijing claims Taiwan as part of China, while Taiwan's government rejects Beijing's sovereignty claim.

That means future arms decisions remain closely connected to the broader US-China relationship.

Defence Companies Are Watching the Delays

The issue has already attracted attention from US defence companies.

Anduril founder Palmer Luckey said earlier in September that the delay in US approval of the Taiwan package was affecting the company's business. He said he had discussed the issue with Trump but did not know the current status of the package.

The potential beneficiaries of Taiwanese procurement extend beyond one company.

Depending on the equipment eventually approved, major US contractors could gain orders spanning aircraft, missiles, air-defence systems, command-and-control equipment and other military technologies.

For investors, however, an announced or proposed package should not automatically be treated as immediate revenue. Contracts, funding, production schedules and deliveries determine when an order translates into company sales.

Taiwan Is Also Increasing Domestic Defence Capability

Taiwan is not relying exclusively on imported weapons.

The island has its own defence-development programme covering areas including submarines, fighter aircraft and long-range missiles. Taiwanese forces have also displayed domestically developed military equipment during recent exercises.

That creates a broader investment theme around Taiwan's defence industry.

Higher domestic defence spending can support local manufacturers and technology suppliers, while cooperation with US contractors can provide access to systems and capabilities that Taiwan does not produce domestically at scale.

Taiwan's Legislative Yuan also passed a special act in May covering planned US arms purchases from 2026 to 2033, with an upper limit of NT$780 billion, according to Taiwan's Ministry of National Defense.

The actual pace of spending, however, will depend on procurement decisions, budgets and delivery schedules.

What Investors Should Watch Next

The immediate focus will be on whether Washington formally moves ahead with the pending $14 billion package.

Investors should monitor several developments:

• US approval: Whether the Trump administration changes the status of the pending package.

• Delivery schedules: Particularly the delayed F-16V programme and other previously ordered equipment.

• Taiwan's defence budget: Higher domestic spending could create additional opportunities for local and international suppliers.

• US-China relations: Arms sales remain one of several sensitive issues between Washington and Beijing.

• Defence-company orders: Investors should distinguish between political announcements, formal contracts and recognised revenue.

• Production capacity: Delivery delays can affect both customers and defence contractors when manufacturing schedules are constrained.

The broader defence industry is also facing higher demand from several regions. The Pentagon, for example, recently awarded RTX's Raytheon a provisional $20.7 billion multiyear AMRAAM missile contract, underscoring the wider push to expand US weapons production.

Why This Matters for Global Markets

The Taiwan arms-sales issue is unlikely to drive broad equity markets on its own, but it can matter for specific sectors.

US defence companies could be affected by changes in procurement schedules and contracts. Semiconductor and technology investors also monitor Taiwan-related developments because Taiwan is central to the global chip supply chain.

For Indian investors, the more relevant connection is through global risk sentiment, technology supply chains and US-listed defence companies rather than a direct impact on Indian equities.

Any major change in cross-Strait tensions could have wider consequences for Asian markets, shipping, technology supply chains and corporate investment decisions. Those effects would depend on how events develop and should not be assumed in advance.

Bottom Line

Taiwan says it remains in continuous talks with the United States over arms sales and has received repeated assurances that US policy toward Taiwan has not changed after the Trump-Xi summit. The immediate issue is the pending roughly $14 billion arms package, alongside delays in previously ordered equipment such as F-16V fighters.

For investors, the key distinction is between proposed arms packages, formal approvals, contracts and actual deliveries. The next major developments will be the status of the $14 billion package, progress on Taiwan's existing procurement backlog and any changes in US-China relations that affect defence trade.

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This article is for informational and educational purposes only and should not be considered investment advice.