Military BOOM – Can Firms Keep Up?

Taiwan‑based Transcom has secured military‑grade certification for its advanced RF amplifiers amid rising defense spending, positioning it to compete for major contracts.

At a Glance

  • Transcom has completed certification for military-spec high-frequency solid-state power amplifiers, Doppler up-conversion amplifiers, and high-frequency receivers
  • Taiwan’s 2025 defense budget is projected at NT$647 billion (≈US$20 billion), about 2.45% of GDP
  • President Lai Ching-te has pledged to increase military spending to at least 3% of GDP via a supplemental budget
  • U.S. arms sales to Taiwan may rise above Trump-era levels, aiding budget approval
  • Transcom is Taiwan’s first integrated manufacturer of microwave components for defense applications

Strategic Timing for Transcom

Transcom’s certification of advanced RF components coincides with a dramatic increase in Taiwan’s defense spending. For 2025, the government has proposed a record NT$647 billion budget—about 2.45% of GDP—with additional funds aimed at achieving President Lai Ching-te’s goal of raising defense outlays to 3% of GDP. The buildup comes amid intensifying military pressure from China.

This fiscal expansion, paired with U.S. legislative support for enhanced arms transfers to Taiwan, is reshaping the island’s procurement landscape. With radar, communication, and electronic warfare systems in high demand, Transcom’s newly certified technologies arrive at a pivotal moment.

Technical Edge and Market Position

Established in 1998 at the Tainan Science Park, Transcom has developed niche expertise in GaAs-based power and low-noise transistors using PHEMT, HFET, and MESFET processes. The company recently passed stringent military testing for its solid-state power amplifiers, Doppler up-conversion amplifiers, and receivers—components critical to defense operations.

These subsystems serve as key enablers for military platforms: radar systems require robust signal amplification, secure communications rely on stable frequency modulation, and electronic warfare platforms demand highly sensitive RF receivers. With its military-grade certifications secured, Transcom is positioned to supply Taiwan’s defense integrators as well as partners across the Indo-Pacific.

Watch a report: Transcom’s milestone signals a new era for Taiwan’s defense suppliers.

Outlook and Broader Impacts

Taiwan’s strategic emphasis on indigenous defense capability is opening doors for homegrown suppliers. With the defense budget on an upward trajectory and pressure to reduce reliance on foreign imports, Transcom stands to benefit from localization incentives and technology transfer opportunities.

As Taiwan’s defense strategy shifts toward asymmetric warfare and domestic innovation, certified suppliers like Transcom could find themselves embedded in future platforms—from radar-equipped drones to locally built naval systems. By leveraging its technical strengths and aligning with national defense priorities, Transcom may well become a cornerstone of Taiwan’s emerging military-industrial complex.

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