Taiwan plans to propose a 2027 defence budget of more than NT$1.1 trillion ($34.1 billion), up 16% from the previous year and above NT$1 trillion for the first time, extending military spending above 3% of GDP after 2026 total defence outlays, including the coast guard and veterans' affairs, reached NT$949.5 billion, or 3.32% of GDP, a 22.9% increase from a year earlier. The package, due to be unveiled on August 20, sits within President Lai Ching-te's goal of steadily raising defence spending toward 5% of GDP by 2030 as China maintains military pressure and Washington urges Taipei to strengthen its own deterrence. Taiwan has focused on asymmetric warfare capabilities backed by a longstanding U.S.-endorsed "porcupine strategy," while also expanding domestic production through projects such as its submarine program. The coming budget release is expected to clarify how much will go to procurement, personnel, maintenance and research and development, at a time when any conflict across the Taiwan Strait would threaten global chip supply chains dominated by Taiwan Semiconductor Manufacturing Company.