Taiwan's military-industrial complex dominates at arms show

This article was written by Edwin Hsiao and published by the Taiwan Journal on September 14, 2007. It features the 9th biennia Taipei Aerospace and Defense Technology Exhibition, Taiwan's largest defense exhibition, which was recently held at the Taipei World Trade Center. As usual, the Ministry of National Defense (MND) dominated the event, as its pavilion took up over half the floor space and showcased cutting-edge technology, weaponry and equipment used by Taiwan's armed forces.

According to MND officials, the ministry's high-profile presence at the event was a way of demonstrating its military achievements. It was also an active promotion of the multipurpose applications of technology developed by Taiwan's aerospace industry.

In 2007, the exhibition attracted 63 international exhibitors, including Dassault Aviation from France and Lockheed Martin Corp. and Raytheon Co. from the United States. The exhibition featured 602 booths set up by local and foreign aviation, naval and land defense technology manufacturers and contractors. These figures represented a 50-percent increase from the last event in 2005.

Specifically, the MND's pavilion featured exhibits from Taiwan's Air Force, Army, Navy, and Combined Logistics Command. The Chungshan Institute of Science and the Technology (CSIST) and the Manufacturing and Production Center (MPC), both of which are under the ministry's Bureau of Armament and Acquisition Armaments, also provided exhibits.

According to this article, the major items of interest at the exhibition were two new versions of the Combined Logistics Command's eight-wheeled CM-32 Cloud Leopard -- a 105-millimeter low-recoil turret gun and a 40-millimeter grenade launcher turret. The 155-millimeter self-propelled howitzer developed by the 202nd Arsenal under the MPC also attracted considerable attention.

According to the Military Express, a local monthly magazine, this year's exhibition was attractive because several newly developed weapons were unveiled to the public for the first time. A wide range of advanced weapons demonstrated that Taiwan possessed sophisticated capabilities in research and development of ground weaponry.

According to MPC officials, the self-propelled howitzer is fitted with a 45-caliber gun that conforms to the North Atlantic Treaty Organization's Joint Ballistic Memorandum of Understanding. There are 17 on-board rounds that can be fired at a rate of up to six per minute with ranges in excess of 38 kilometers when fitted with a flick rammer system. Meanwhile, the howitzer's command center is equipped with an advanced on-board fire-control system, which includes a computer, global positioning receiver and inertial navigation system. These special features enable the gun to rapidly engage the targets after receiving their positions.

According to the Military Express, Taiwan has a dense road network, which is a suitable tactical environment for self-propelled howitzers on wheels. Therefore, the development of this self-propelled gun by the military meets an essential need. Indeed, the self-propelled gun follows a global trend in the development of artillery weapon systems. In comparison with a tracked self-propelled artillery system, which carries the same caliber gun, the wheeled model suitable for Taiwan's special battlefield terrain and combines a capacity for rapid deployment enjoys such advantages as a lower price, lighter weight and ease of maintenance.

According to MND officials, the 40-millimeter grenade launcher turret version of the Cloud Leopard will enter service with Taiwan's Armed Forces by the end of 2007. The vehicle is with high survivability and tactical mobility. Fitted with a remote-control weapon station, the crew can operate the carrier's 40-millimeter grenade launcher and 7.62-millimeter machine gun.

According to the Military Express, remote-control weapon stations are widely used by many countries around the world as a weapon system for armored vehicles. Therefore, the adoption of this system by Taiwan's military is in line with the global trend of weapons development.

According to MND officials, in recent years the military has been focusing on boosting cooperation between itself and the civilian sector when developing new weapons systems. This greatly helps with the development of relevant domestic industries. For example, the MND recently awarded US$300 million in deals for the manufacture and repair of about 3,000 military products to civilian contracts.

According to this article, another industry to recognize the benefits of exposure to the civilian market is Taiwan's aerospace sector. Indeed, in recent years, Taiwan's aerospace industry has transformed itself from manufacturing solely military products into a producer of civil aircraft's structural, engine and interior parts. The production value of this industry reached US$1.26 billion in 2006 and is expected to reach US$1.3 billion in 2007.

The history and transformation of the Aerospace Industrial Development Corp. (AIDC) in central Taiwan reflects the aforementioned policy of marketplace adaptation for military contractors. The AIDC, previously known as the Aero Industry Development Center, was established in 1969 under the authority of Taiwan's Air Force. In 1983, it was transferred to be under the control of CSIST. In 1996, in support of Taiwan's aerospace development objectives, the AIDC was transformed again from a military establishment into a government-owned company under the authority of the Ministry of Economic Affairs (MOEA).

Today, as a market-oriented entity, the AIDC's business strategy has drastically changed, from being a supplier of military products and services, to becoming a well-balanced and diversified provider to both military and commercial markets. For example, in 2004, Bell Helicopter Textron Inc. contracted the manufacturing of its United States Army AH-1Z and UH-1Y tailbooms to the AIDC. In August 2007, the company awarded the AIDC a new contract to manufacture parts for nearly 100 helicopters. Indeed, according to this article, Bell Helicopter and the AIDC have a long history of cooperation since the two companies co-produced 118 UH-1H's for the Taiwanese Army from 1969 to 1976.

Meanwhile, the AIDC and Sagem Avionics Inc. of the United States recently formed an alliance to tap the digitized glass-cockpit market in the Asia-Pacific region. The decision was based partly on the AIDC's experience in developing the digital glass cockpit for an improved version of the Ching-kuo Indigenous Defense Fighter, which was also called the “Goshawk”. The AIDC will provide its experience in digitized glass cockpit, while Sagem Avionics Inc. will offer its customizable, comprehensive and affordable display solutions to the partnership.