TAIPEI (TVBS News) — Taiwan announced Monday (Jan. 12) it will purchase rifle ammunition externally after consumption surged nearly 150 percent in four years, depleting reserves below standard levels. Minister of National Defense Wellington Koo (顧立雄) attributed the shortage to enhanced live-fire training, the reinstatement of one-year conscription, and extended reservist programs. The Ministry of National Defense (MND, 國防部) confirmed annual rifle ammunition usage jumped from 23.4 million rounds in 2021 to 58.81 million rounds in 2025.
Lin Wen-hsiang (林文祥), Director-General of the Armaments Bureau (軍備局), said external procurement offers better value, with the winning bid for M855 steel-core rounds at NT$15.53 (around US$0.49) per round compared to NT$16.18 (around US$0.51) for domestic production. The price difference represents savings of approximately NT$0.65 (around US$0.02) per round on tens of millions of bullets annually. Lin noted the Army has not commissioned steel-core rounds from the Armaments Bureau in nearly 20 years.
Koo explained the 205th Arsenal (205兵工廠) previously produced M855 rounds for the U.S. military at only NT$6 (around US$0.19) per round because Washington covered primers, propellant, packaging, and transportation costs. Taiwan paid only for bullet heads, casings, and processing under that arrangement. Legislator Loh Mei-ling (羅美玲) questioned why 5.56 mm ammunition cost NT$9.5 (around US$0.30) per round in 2022, and Lin clarified those were standard non-steel-core rounds (M193), not the steel-core M855 variant.
Army Chief of Staff Gen. Chen Chien-yi (陳建義) said the Army will phase out non-steel-core rounds and focus solely on steel-core ammunition going forward. A new ammunition facility in Dashu (大樹), Kaohsiung, will feature four separate production lines for different calibers. Lin said the 5.56 mm production line will begin operations in March, replacing the 205th Arsenal's previous shared production line that handled various ammunition types.