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The United States has approved a $385 million arms sale to Taiwan amid rising tensions with China.

What’s the deal: In a readout provided by the US Defense Security Cooperation Agency (DSCA), the United States will provide Taiwan with $385 million in military equipment and support, including $320 million for spare parts and maintenance of its F-16 fighter jet fleet and Active Electronically Scanned Array radar systems. Additionally, $65 million will be allocated for upgraded mobile subscriber equipment (IMSE) and follow-up support to enhance Taiwan’s tactical communications infrastructure.

The sale, sourced from US government stock and facilitated by contractors such as Lockheed Martin and General Dynamics, is designed to maintain the operational readiness of Taiwan’s defense systems and bolster its air and communication capabilities. Deliveries are expected to begin in 2025, with minimal US personnel involvement required for implementation.

Taiwan reacts: In a statement, Taiwan’s Ministry of National Defense said it was thankful to the United States for the military support. They added, “Taiwan and the United States will continue to consolidate our security partnership.”

Digging deeper: This all comes as Taiwan’s strategic role in the global semiconductor supply chain has made it a critical ally for the United States, with the island producing over 60% of the world’s semiconductors and nearly 90% of its most advanced chips. These components are indispensable to the US economy and national security, powering cutting-edge technology and military systems. A potential invasion of Taiwan by China could allow Beijing to exert control over this supply chain, leveraging it as an economic and strategic weapon by restricting US access to semiconductors.