TAIPEI – In a dramatic escalation of its self-defense preparations, Taiwan's President Lai Ching-te today, November 26, 2025, announced a proposed special supplemental defense budget of $40 billion (approximately NT$1.25 trillion). The unprecedented funding package is set to be disbursed over eight years (2026 to 2033) to acquire advanced weaponry and construct a comprehensive, multi-layered defensive system aimed at significantly bolstering deterrence against mainland China.
This massive capital injection is part of Taiwan's broader goal to dramatically raise its annual defense spending to approximately 3.32% of GDP for 2026, totaling around $31.18 billion (NT$949.5 billion), with a long-term target of reaching 5% of GDP by 2030.
The move comes amid relentless military pressure from Beijing and persistent calls from the United States for Taiwan to demonstrate a greater commitment to its own asymmetrical defense capabilities.
The Overall Defense Concept: The "Porcupine Strategy"
The special $40 billion allocation is specifically earmarked for Taiwan’s Multi-Layered Defense System, which sits at the core of its Overall Defense Concept (ODC), popularly known as the "Porcupine Strategy."
This strategy is deliberately designed to negate the Chinese military's overwhelming quantitative advantage. It focuses on utilizing highly survivable, low-cost, and flexible systems intended to make any potential invasion by Beijing prohibitively costly and difficult. The goal is to establish a dense, resilient "safety net" by integrating various defense assets across different altitudes and operational zones.
Key Components of the Multi-Layered Defense System
The proposed system involves a comprehensive modernization and integration across five critical domains:
| Defense Component | Focus and Key Systems | Asymmetrical Advantage |
| High-Altitude Air Defense | Countering fighter jets and incoming ballistic missiles. Systems include upgraded U.S.-made Patriot missiles and Taiwan's advanced, self-developed Tien Kung (Sky Bow) series, including the new Chiang Kung (High Bow) anti-ballistic missile system. | Strategic defense against primary air threats. |
| Low-Altitude & Close-Range Defense (T-Dome) | Newly announced initiative similar to Israel’s Iron Dome. Designed for efficient detection and interception of smaller, more numerous threats like drones, rockets, and cruise missiles at low altitudes. | High-volume, cost-effective counter to swarm tactics. |
| Maritime and Littoral Defense | Preventing Chinese amphibious forces from reaching the beaches. Focuses on Mobile Anti-Ship Missiles (e.g., Harpoon Coastal Defense System), heavily armed Fast Attack Craft, and strategic sea mine deployment to block invasion routes. | Denying the beachhead through distributed, elusive fire power. |
| Ground Defense (Counter-Landing) | Utilizing the island’s complex terrain for highly mobile, small, and well-camouflaged units. Focuses on attrition and destruction of enemy forces that successfully land. | Turning the island’s geography into a defense fortress. |
| Cyber and Electronic Warfare (C5ISR) | Enhancing Command, Control, Communications, Computers, Cyber, Intelligence, Surveillance, and Reconnaissance (C5ISR) capabilities to maintain situational awareness and severely disrupt and degrade the adversary's systems. | Non-kinetic superiority and operational resilience. |
The Cornerstone of the Strategy: Resilience and Integration
The strategic success of the ODC rests on two core principles:
Asymmetric Warfare: Rather than engaging in a financially and practically unfeasible conventional arms race with China, Taiwan is investing in smart, affordable, and difficult-to-destroy defensive measures.
Survivability and Dispersal: The emphasis is on mobility and rapid recovery. Systems must be decentralized and able to survive a massive initial Chinese barrage to ensure continued resistance.
Crucially, the new T-Dome initiative is intended to function as the lynchpin of the strategy's "sensor-to-shooter" loop, integrating all existing radar sensors and weapon systems more efficiently to ensure extremely fast and accurate response times.
Taiwan's decisive action to dramatically increase its defense posture—significantly surpassing the defense spending rates of many European nations—is not merely about self-defense; it is about creating a level of deterrence that forces Beijing to gravely reconsider the true cost of invading the democratic island.