NEW YORK, January 1, 2026, 19:20 ET
- Pentagon awards Lockheed Martin Taiwan foreign military sales contract with a $328.5 million ceiling
- Deal covers 55 Legion Enhanced Infrared Search and Track sensor pods and related equipment
- Move lands as Taiwan stays on alert after China’s “Justice Mission 2025” drills
The Pentagon said on Wednesday it awarded Lockheed Martin a contract worth up to $328.5 million for a foreign military sale to Taiwan to meet what Washington called an “urgent operational need” of the Taiwan Air Force. The deal covers 55 Infrared Search and Track Legion Enhanced Sensor pods and related processors and containers, with work in Orlando, Florida expected to be completed by June 2031. 1
The award comes as Taiwan has remained on high alert after China staged massive drills around the island this week in an exercise Beijing dubbed “Justice Mission 2025,” involving rockets, warships and aircraft. Lyle Goldstein, Asia program head at U.S. think tank Defense Priorities, said Beijing was unlikely to start a war despite the growing intensity: “They threaten and bluster a lot, but ultimately (a war) would be very costly for China no matter what.” 2
Washington recognises China diplomatically but maintains unofficial ties with Taiwan and is legally bound to provide the island with the means to defend itself, a policy that has long angered Beijing. In mid-December, the Trump administration announced a proposed $11.1 billion weapons package for Taiwan and said it would require U.S. congressional approval, with China’s foreign ministry condemning the package and demanding an end to such sales. 3
Foreign Military Sales, or FMS, is a U.S. government programme in which Washington sells defence equipment and services to partner governments through a government-to-government process. Pentagon contract notices often refer to a “ceiling value,” meaning the maximum the contract could reach as orders and options are finalised.
The Pentagon said $157.3 million in foreign military sales funds were obligated at the time of award. In procurement terms, “obligated” refers to money set aside immediately to begin work, while additional funding can follow as the programme advances.
Infrared Search and Track, or IRST, refers to sensors that detect and track aircraft by heat signatures rather than radar emissions. Because the system is passive, it can help identify targets without sending out radar signals.
The Pentagon described the Taiwan requirement as an “urgent operational need,” language it uses for capability gaps it wants addressed quickly. The contract notice did not detail operational plans beyond the procurement and delivery items it listed.
Lockheed’s work is slated for Orlando, Florida, and is expected to run into 2031. Multi-year schedules are common for major defence deliveries that can include integration, support equipment and long-lead components.
The Taiwan award also lands amid a steady flow of Pentagon work for the biggest U.S. defence contractors. Boeing, for example, received a separate $2.7 billion U.S. military contract for post-production support services related to Apache helicopters, a Pentagon announcement said. 4
China claims democratically governed Taiwan as its own territory and has not ruled out using force to bring it under Chinese control. Taiwan rejects Beijing’s sovereignty claims and says it needs defence purchases to deter conflict.
For Lockheed, the Taiwan sensor-pod contract adds to a stream of foreign military sales-related work as Washington expands security assistance and arms transfers across the Indo-Pacific. The Pentagon framed the award as part of meeting Taiwan’s near-term air force requirements.
