TAIPEI, Taiwan — Taiwan is moving to establish a domestic production line for 120mm tank ammunition for its newly acquired M1A2T Abrams tanks, in another major step toward reducing its dependence on overseas ammunition supplies during a potential crisis.
The Armaments Bureau’s Arsenal 202 is at the center of the effort, with Taiwan seeking to develop the ability to manufacture 120mm tank rounds locally.
The move comes as Taipei rapidly expands domestic defense production and ammunition capacity amid growing concerns about supply-chain disruption, blockade scenarios and the possibility of a prolonged conflict.
The goal is bigger than simply producing ammunition for one tank fleet: Taiwan is trying to ensure that its military can continue fighting even if access to foreign supplies is disrupted.
From imported Abrams to locally produced ammunition
Taiwan purchased 108 M1A2T Abrams tanks from the United States in a deal approved in 2019.
The final batch of 28 tanks arrived at Taipei Port in April 2026, completing delivery of the entire order. The first 38 tanks had arrived in December 2024, followed by another 42 in 2025.
The acquisition was a major modernization effort for Taiwan’s Army, whose armored fleet also includes older CM-11 Brave Tiger and M60A3 tanks, many of which have been in service for more than two decades.
But buying the tanks is only part of the equation.
A modern armored force also requires a reliable supply of ammunition, spare parts, fuel, maintenance equipment and trained crews.
That is where Taiwan’s domestic-production strategy becomes important.
Arsenal 202 is preparing for 120mm production
Taiwan’s Armaments Bureau already had experience producing 105mm tank ammunition.
The military said in 2019 that it planned to develop the capability to manufacture 120mm tank rounds through industrial cooperation, technology transfer and domestic research and development.
The project has since moved beyond the planning stage.
Arsenal 202 sought bids last year for a 120mm tank-ammunition assembly system, signaling that Taiwan was moving toward establishing an actual production capability.
The latest reports indicate that the effort is now being incorporated into Taiwan’s broader defense-production plans.
Why 120mm ammunition matters
The M1A2T Abrams uses a 120mm main gun, making compatible ammunition essential to maintaining the tanks’ combat capability.
Without sufficient ammunition, even a modern tank fleet becomes significantly less useful in a sustained conflict.
For Taiwan, this concern is amplified by geography.
The island could face serious logistical challenges if a conflict with China disrupted shipping routes or restricted access to overseas military supplies.
Taiwanese defense officials and analysts have therefore increasingly emphasized the need for larger ammunition stockpiles and greater domestic manufacturing capacity.
A Taipei Times report in May quoted a defense official warning that Taiwan needed to strengthen its defense-industrial base and ammunition reserves to improve resilience during a potential full-scale conflict.
The Abrams program is part of a much bigger industrial push
The 120mm ammunition project is not an isolated program.
Taiwan’s Armaments Bureau is planning significant investments across several military arsenals between 2026 and 2032.
According to reporting based on Taiwan’s upcoming defense budget, more than NT$14.14 billion (about US$446 million) is planned for projects involving Arsenal 202, 205, 209 and 401.
The planned expansion covers a much wider range of military requirements, including ammunition, explosives, gun barrels, optical equipment, armored vehicles and other defense-related equipment.
Taiwan is also introducing more semi-automated and automated equipment to expand manufacturing capacity.
The strategy reflects a broader shift: rather than relying heavily on imported weapons and ammunition, Taipei wants to develop the industrial infrastructure needed to maintain and replenish its forces domestically.
Taiwan is also producing heavier ammunition
The push toward domestic ammunition production extends beyond tank rounds.
In April, Taiwan’s Ministry of National Defense announced a Taiwan-U.S. initiative involving domestic production of heavy-caliber artillery shells of 105mm and larger.
The program was valued at approximately NT$910 million (US$28.85 million) and was described as an effort to strengthen Taiwan’s role in defense supply chains.
The tank-ammunition program therefore fits into a wider effort to expand Taiwan’s ability to manufacture critical munitions at home.
Defense spending is rising sharply
The ammunition drive comes as Taiwan prepares for a major increase in defense spending.
President Lai Ching-te has proposed a 2027 defense budget exceeding NT$1 trillion, the first time Taiwan’s annual defense spending would cross that threshold.
Reuters reported that the proposed increase is part of Lai’s effort to strengthen Taiwan’s self-defense capabilities amid continued military and political pressure from Beijing.
Taiwan has increasingly emphasized indigenous defense industries, including domestic weapons production, drones, artificial intelligence and other technologies.
The objective is to make the military more resilient—not simply more heavily armed.
China’s military pressure remains a major factor
Taiwan’s defense planning is taking place against the backdrop of persistent Chinese military activity around the island.
China claims Taiwan as part of its territory and has repeatedly conducted military exercises and operations around the island.
Reuters reported in August that Taiwan has been strengthening defenses in the Penghu Islands, while its military continues preparing for scenarios involving a potential Chinese attack.
Taiwan’s latest defense report also warned that China’s military is becoming increasingly capable of using air and sea operations to pressure the island.
That has increased the importance of being able to sustain military operations even if Taiwan’s normal supply routes are disrupted.
The real objective: ammunition resilience
The decision to produce 120mm ammunition domestically may appear to be a relatively small part of Taiwan’s military modernization.
It is actually a critical piece of a much larger strategy.
Modern warfare consumes enormous quantities of ammunition. A military can possess sophisticated tanks, aircraft and missile systems, but those capabilities become difficult to sustain if ammunition stocks run low or replacement supplies cannot reach the battlefield.
Taiwan is therefore attempting to build production capacity before it is urgently needed.
That could give the island greater freedom to replenish ammunition without relying entirely on shipments from overseas.
Taiwan’s Abrams fleet is now complete
With all 108 M1A2T Abrams tanks now delivered, Taiwan has completed the acquisition phase of one of its most important recent armored-modernization programs.
The next challenge is sustaining the fleet.
That means training crews, maintaining the vehicles, securing spare parts and ensuring a dependable supply of ammunition.
The planned 120mm production line is therefore about more than manufacturing a shell.
It is about building the industrial backbone required to keep Taiwan’s newest armored force operational during a crisis.
Taiwan has already bought the Abrams. Now it is working to make sure it can keep them supplied when outside help may be hardest to reach.
And that could prove to be the more consequential part of the entire program.
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