The Pentagon awarded Lockheed Martin a foreign military sales contract with a $328.5 million ceiling to fulfill an "urgent operational need" for the Taiwan Air Force, obligating $157.3 million at award. The deal funds the delivery of 55 IRST Legion Enhanced Sensor pods plus processors and containers, with work carried out in Orlando and completion expected by June 2031. The announcement comes as Taiwan remained on high alert after large Chinese military drills and follows a mid-December announcement of an $11.1 billion U.S. arms package to Taiwan.
Pentagon Awards $328.5M Contract to Lockheed Martin for Taiwan Sensor Pods Amid Rising Tensions
A general view of the Pentagon in Washington, D.C., U.S., October 15, 2025. REUTERS/Kevin Lamarque
WASHINGTON, Dec 31 (Reuters) - The Pentagon announced on Wednesday that it has awarded Lockheed Martin a foreign military sales contract valued up to $328.5 million to meet an "urgent operational need" reported by the Taiwan Air Force.
Contract Details
The agreement carries a ceiling value of $328.5 million, with $157.3 million in foreign military sales funds obligated at the time of award. The contract covers the procurement and delivery of 55 Infrared Search and Track (IRST) Legion Enhanced Sensor pods, along with associated processors, pod containers and processor containers.
"This contract provides for the procurement and delivery of fifty-five Infrared Search and Track Legion Enhanced Sensor pods, processors, pod containers, and processor containers required to meet the urgent operational need of the Taiwan Air Force," the Pentagon said in its statement.
Work Location and Timeline
The Pentagon said the work will be performed in Orlando, Florida, and is expected to be completed by June 2031.
Why This Matters
Washington maintains formal diplomatic relations with China while keeping unofficial ties with Taiwan, and the United States remains the island's principal arms supplier. U.S. law requires that Taiwan be provided with the means to defend itself, but arms transfers to the island have long been a source of tension with Beijing.
Taiwan remained on high alert following large-scale Chinese military drills around the island the previous day. Officials said the island's coast guard was keeping its emergency maritime response center active as it monitored Chinese naval movements.
Broader Context
In mid-December, the administration of President Donald Trump announced roughly $11.1 billion in arms sales to Taiwan — the largest U.S. weapons package ever for the island, issued amid growing military pressure from China. Beijing claims Taiwan as its territory and has not ruled out the use of force; Taipei rejects that claim and called the recent drills a threat to regional security and a blatant provocation.
(Reporting by Kanishka Singh in Washington; Editing by Chris Reese and Alistair Bell)
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