Taiwan plans US$850 million ammunition spend to prepare for potential PLA blockade

Taiwan's military is set to allocate over NT$27 billion (US$850 million) to crucially boost its ammunition stocks by four-fold, ensuring operations can be sustained for up to 120 days during a potential cross-strait conflict that could lead to a blockade by the People's Liberation Army (PLA). This six-year "urgent ammunition replenishment" programme, from 2023 to 2031, requires legislative approval.

The initial NT$7.3 billion will be spent this year, with another NT$7.3 billion proposed for 2027 to accelerate procurement. Lieutenant General Huang Wen-chi revealed the plan, noting a shift towards regular combat readiness drills has increased ammunition usage, pushing the need for quicker stock replenishment. The programme encompasses essential munitions, including tank rounds, artillery shells, and explosives.

Additionally, missile stocks, such as Stinger missiles, are being replenished. Taipei is wary of a PLA blockade, as it could cut off external supply lines, forcing Taiwan to rely on existing stockpiles and locally produced ammunition. The island's geography makes it particularly vulnerable to such an attack. While the US supports Taiwan but refrains from intervention, Taiwan has been striving to produce more ammunition locally.

The Defence Ministry originally planned to fund this through a special defence budget, including constructing 14 additional munitions lines, to double production capacity. However, the legislature limited the spending to US weapons, excluding general-purpose ammunition and local production. Lawmakers have emphasized the importance of ammunition stockpiles, resupply capacity, and sustained production for combat capability, drawing parallels with the ongoing conflict in Ukraine.

Taipei is also investing in storage capacity, with plans to spend NT$4.18 billion on six blast-resistant ammunition depot projects by 2033. Analysts suggest larger ammunition reserves are crucial for prolonged conflicts, as Taiwan may face significant ammunition consumption while awaiting external aid.