Full Breakdown

Taiwan Boosts Indigenous Defense Amid Chinese AI-Driven Warfare Focus

8/26/2026, 10:44:54 PM

Core Developments in Taiwan’s Defense

The National Chung-Shan Institute of Science and Technology (NCSIST) disclosed the Chiang Kung (Strong Bow) interceptor on August 22. The system uses a land-based mobile vertical-launch system, carries four missiles per launcher, and employs a two-stage solid-fuel rocket with thrust-vector control to engage ballistic missiles at altitudes up to 70 km, higher than the 45 km ceiling of the Tien Kung III. It will be integrated into the outer layer of the T-Dome air-and-missile-defense concept proposed by President William Lai Ching-te in October 2025.

Taiwan’s shipbuilder CSBC Corporation unveiled the Endeavor Manta, an unmanned surface vessel (USV) in Kaohsiung. The trimaran-hull craft is 8.6 m long, 3.7 m wide, weighs five metric tons, and can carry a one-ton payload. Powered by two outboard engines, it reaches 35 knots (? 65 km/h) and can operate autonomously or in swarms of up to 50 vessels, using 4G, satellite, and radio links for command and control.

Legislative gridlock delayed the inclusion of Chiang Kung funding in the 2026 special defense budget. The final budget passed in May excluded money for the interceptor, but the Ministry of National Defense still plans to build two Chiang Kung batteries equipped with at least 128 missiles on a US$1.13 billion budget.

The People’s Liberation Army (PLA) newspaper PLA Daily published commentaries in August 2024 emphasizing AI-enabled warfare. An article dated August 13 described a shift from “war of attrition” to “dissipative warfare,” focusing on the enemy’s operational system as the center of gravity.

An August 16 piece highlighted low-cost unmanned systems on the Ukrainian battlefield, and an August 19 commentary urged faster procurement cycles for AI-driven drone swarms.

The United States restricts advanced chips to the PRC. Nvidia’s B300 GPU exceeds the capabilities of the H200 chip permitted for PRC firms.

Taiwan’s Keelung District Prosecutors Office indicted nine individuals for smuggling 130 Super Micro B300 AI servers containing high-end Nvidia chips to the PRC. Prosecutors identified a senior Nvidia manager, surnamed Chang, as the “core figure.” Taiwanese customs intercepted 56 servers; the remaining 74 reached PRC customers.

The U.S. Department of Justice unsealed an indictment on March 19 charging three Super Micro employees—including a co-founder and a Taiwan office manager—for diverting servers to the PRC. Taiwanese authorities also searched Super Micro’s Taiwanese offices, its distributor Albatron, and data-center operator Chief Telecom on June 29.

PLA Daily articles framed AI and drone swarms as essential to “intelligentized” warfare, arguing that future conflicts will prioritize information superiority over traditional firepower.

The August 12 PLA Daily article is listed as “scheduled”; its content remains unverified, leaving a gap in the PLA’s publicly stated AI-warfare roadmap.

No public timeline has been provided for the deployment of the two Chiang Kung batteries, creating uncertainty about when the capability will become operational.

Taiwan’s MND intends to proceed with construction of two Chiang Kung systems under the approved US$1.13 billion budget, though delivery dates are undisclosed.

Ongoing investigations by Taiwanese authorities and the U.S. Department of Justice continue to target illicit AI-hardware transfers, with additional indictments possible.

PLA Daily is expected to release further commentaries on AI and drone integration, potentially shaping future Chinese military procurement priorities.