The U.S. Department of Defense has finalized a $439.4 million contract with Lockheed Martin to produce Army Tactical Missile System (ATACMS) missiles intended for Taiwan. The agreement covers the manufacturing of the precision-guided short-range ballistic missiles, which will be integrated into the M142 High Mobility Artillery Rocket System (HIMARS) launchers already supplied to the island nation.
Under the terms of the deal, Lockheed Martin will handle the production work primarily in Texas. The contract establishes a delivery timeline that extends through February 28, 2031. While the financial value and schedule are now public, the exact number of missiles included in this specific production batch remains undisclosed.
U.S. officials, including those in the State Department and the Department of War, have maintained their standard practice of withholding specific quantities in arms sales to Taiwan to protect operational security.
This contract is a component of a broader defense package approved by the Trump administration in December 2025. That initial authorization, valued at over $11 billion, represented the largest U.S. weapons sale to Taiwan at the time. The earlier package included 420 ATACMS missiles, 82 additional HIMARS launchers, and more than 1,200 precision-guided rockets.
Much of the equipment from that initial phase, including 29 HIMARS launchers and hundreds of guided rockets, has already been delivered, establishing an operational capability that this new contract aims to expand.
The ATACMS missile is designed to strike high-value military targets, such as command centers and air defense systems, at distances up to 300 kilometers. Because the system launches from a mobile platform, it allows for rapid deployment and repositioning after firing. Taiwanese officials have characterized these acquisitions as essential steps in modernizing their armed forces and strengthening defensive capabilities against regional threats.
The agreement arrives amid heightened military tensions across the Taiwan Strait. Beijing considers Taiwan a breakaway province and has consistently opposed U.S. arms sales. In late December 2025, the People's Liberation Army conducted large-scale military exercises around the island, with state media highlighting simulated strikes on HIMARS launchers.
