U.S. Awards $439 Million ATACMS Contract for Taiwan, Expanding Island's Long-Range Strike Capability
The U.S. Army has awarded Lockheed Martin approximately $439 million to begin production of the Army Tactical Missile System (ATACMS) and associated launcher hardware, funded by Taiwan's Foreign Military Sales program. The contract, structured as an undefinitized action to expedite manufacturing, is expected to reach nearly $900 million. Work will be completed at Lockheed Martin's Grand Prairie, Texas facility by February 2031. This contract stems from a larger $11 billion arms package approved in December 2025, which includes 420 M57 ATACMS missiles (some with a range of up to 500 km), 82 additional HIMARS launchers, and over 1,200 precision-guided rockets. The deal significantly expands Taiwan's existing ATACMS arsenal. In response, China's People's Liberation Army conducted large-scale military exercises around Taiwan in late December, specifically targeting HIMARS systems. Military analysts note that ATACMS could enable Taiwan to conduct deep counterstrikes against Chinese rocket forces and logistics hubs, with a missile from Taiwan's outlying islands potentially reaching Fujian Province in seven minutes.
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