TAIPEI (TVBS News) — President Lai Ching-te (賴清德) announced Tuesday (June 16) that Taiwan's army will form a drone squadron next month. Lai also vowed the government "won't give up" on defense spending. He pledged to pursue alternative funding mechanisms after the opposition-controlled legislature significantly cut the special defense budget.
Speaking at Guandu Area Command Post (關渡指揮部) in northern Taiwan during a pre-Dragon Boat Festival visit to military units, Lai said the squadron would be established at the command post in July. The president had earlier visited the Air Force's Third Radar Squadron on Yangmingshan and the Navy's Songshan Radar Station.
The president said he had observed the ALTIUS-600M attack drone, which achieved excellent results in live-fire exercises earlier this month. The U.S.-made loitering munition achieved a 100 percent hit rate during sea-target exercises on June 3, according to Taiwan's official Military News Agency.
Taiwan has received all 291 ALTIUS-600M drones it purchased from the United States. The delivery set a record for the fastest U.S. arms sale to Taiwan, according to local defense media reports.
The president's most pointed remarks addressed the budget standoff with Taiwan's parliament, the Legislative Yuan (立法院), where opposition parties hold a majority.
"Regarding the significant cuts to the special defense budget, we won't give up," Lai said. "We will submit a new special bill, or use supplementary budgets and increased annual government budgets to support the military, ensuring defense equipment and construction proceed smoothly."
The opposition-controlled legislature passed a defense bill in May that cut the ruling party's original request by 38 percent. The bill approved NT$780 billion (around US$24.8 billion) over eight years, down from the Executive Yuan's proposed NT$1.25 trillion (around US$39.8 billion).
The budget dispute has become a flashpoint between Lai's Democratic Progressive Party (民主進步黨) government and the opposition-controlled legislature. The Kuomintang (國民黨) and Taiwan People's Party (台灣民眾黨) hold a combined majority following the 2024 elections.
The ALTIUS-600M is a loitering munition — sometimes called a "suicide drone" — capable of autonomous target acquisition using artificial intelligence. The system conducted its first sea-target live-fire exercise on June 3 in Yilan County. The two-day exercise also included Javelin anti-tank missile tests.
The drones are manufactured by Anduril Industries, a U.S. defense technology company. Company founder Palmer Luckey (帕爾默·拉奇) personally led a technical team to Taiwan to oversee recent exercises, according to Liberty Times.
The recent exercises marked an improvement from earlier tests. The first live-fire verification test experienced malfunctions and missed targets, but software modifications resolved the issues. The two most recent exercises achieved 100 percent hit rates.
Lai concluded his remarks by thanking troops ahead of the Dragon Boat Festival. "Defending the nation has no holidays," he said. "Because you stand at your posts, the people can celebrate in peace."
Opposition legislators had not publicly responded to Lai's remarks as of press time. The regular government budget remains under review in the Legislative Yuan, with committee deliberations expected to conclude by late June. ◼ (At time of reporting, US$1 equals approximately NT$31.57)
