Taiwan’s Ministry of Defence is raising concerns over delays in the delivery of 66 F-16 Block 70 (Viper) fighter jets from the United States. glitches in the $8 billion critical procurement programme approved in 2019 have prompted Taiwanese authorities to seek to hold back part of the budget against manufacturer Lockheed Martin and seek compensation for “improper profits” resulting from the delay.
at the 28 October session of the Legislative Yuan (Taiwan’s parliament), Deputy Minister of Armaments Chung Shu-ming stated that if the programme was not completed on time, the government would “reserve the remaining budget” and seek to recover the accumulated profits made by the manufacturer during the delay. Chung confirmed that this issue had been raised during visits to the US and Taiwan-US programme management meetings. These statements came after MP Hsu Chiao-hsin questioned the lack of progress in the Air Force’s procurement programme.
Delivery Schedule Uncertainty and Reasons for Delay
According to the original plan, Taiwan was expected to start receiving F-16Vs in 2023, with the delivery of 66 aircraft to be completed by 2026. However, by March 2025, only one twin-seat F-16D (tail number 6831) had been delivered to Taiwan. This single aircraft was recorded as the first of the batch ordered under the 2019 Foreign Military Sales (FMS).
Air Force Commander Lieutenant General Lee Ching-yen explained the main reasons for the delay. He informed the committee that the delivery schedule is currently uncertain due to “supply chain disruptions, labour shortages at Lockheed Martin and hardware-software integration tests”. While the Air Force previously expected 10 aircraft deliveries in 2025, officials acknowledged six months later that completing all deliveries by the end of next year was now a “high-risk target”.
Compensation Process and Legal Framework
The ministry said it was reassessing the overall schedule and adjusting payment phases to ensure that Taiwan does not make early payments for equipment that cannot be delivered. Prime Minister Cho Jung-tai said the government is not considering taking legal action directly against the manufacturer if delays continue. This is because the F-16V deal was realised through the US Foreign Military Sales (FMS) process, which does not include direct claims for compensation.
However, although Lieutenant General Ching-yen clarified that compensation claims can only be pursued under Direct Commercial Sales (DCS), he emphasised that Taiwan plans to formally seek reimbursement for the delayed delivery time. This demonstrates the Taiwanese government’s determination to minimise financial losses in the face of this significant delay, which directly affects its defence capability.
Uncertainty over the delivery of these aircraft, which are vital for Taiwan’s defence modernisation, remains a critical national security issue given the growing military tensions across the Taiwan Strait.
