Anduril Says U.S. Delay in Taiwan Arms Sales Is Affecting Business

Anduril founder Palmer Luckey speaks at a defense forum in Taipei on September 19, 2026.(Photo credit:Official GDC/Wikimedia commons)

 TAIPEI, Sept. 19, 2026 — U.S. defense technology company Anduril Industries says the delay in Washington’s approval of a major arms package for Taiwan is having an impact on its business, as uncertainty over the deal continues ahead of a planned meeting between U.S. President Donald Trump and Chinese President Xi Jinping.

Anduril founder Palmer Luckey said in Taipei on Saturday that the company’s business with Taiwan would be in a different position if the proposed $14 billion arms package were moving ahead. He did not provide details about specific projects affected by the delay.

The package has been awaiting approval from Trump for several months. Trump put the proposed sales on hold following his May meeting with Xi in Beijing, describing the arms package as a potential negotiating tool in relations with China.

Taiwan Arms Deal Remains on Hold

Luckey said he was not aware of the current status of the package but confirmed that the delay was affecting Anduril’s business activities involving Taiwan.

He also said the delay could have broader consequences because other areas of cooperation may not move forward while the larger package remains unresolved.

Anduril has developed a growing presence in Taiwan’s defense sector. Taiwan uses the company’s Altius unmanned aircraft, while the company has also worked on other autonomous defense technologies.

Trump Administration Weighs Wider Consequences

Luckey said he has discussed the Taiwan arms issue with Trump as well as Vice President JD Vance and Secretary of State Marco Rubio.

According to Luckey, officials are considering not only the security implications of additional weapons sales but also possible economic consequences. China has significant influence over supplies of rare-earth materials that are important to several technology industries, and further U.S. arms sales to Taiwan could affect that relationship.

The White House had not immediately responded to Reuters’ request for comment at the time of the report.

Taiwan at the Center of U.S.-China Tensions

The issue is particularly sensitive because Beijing claims Taiwan as part of China, while Taiwan’s government rejects Beijing’s sovereignty claim.

U.S. arms sales to Taiwan have repeatedly drawn criticism from China, which has imposed sanctions on a number of American defense companies involved in supplying the island. Luckey himself was sanctioned by China last year over Anduril’s involvement in arms sales to Taiwan.

The Taiwan arms issue is also expected to feature in the upcoming Trump-Xi meeting in Washington. The two leaders are scheduled to meet on September 24, with trade, technology and Taiwan among the broader issues surrounding the talks.

Drone Technology Gains Importance

Drone technology is playing an increasingly important role in Taiwan’s defense planning.(Photo: Wikimedia commons

The dispute comes as military planners increasingly focus on autonomous systems and drones. Anduril has become one of the prominent U.S. defense technology companies developing such systems, while Taiwan has been expanding its own drone capabilities.

Taiwan held military exercises involving attack drones and conventional weapons on Friday, highlighting the growing role of unmanned systems in its defense planning.

For Anduril, the continued delay in the U.S. arms package creates uncertainty over the timing and scale of potential business with Taiwan. The broader question of future U.S. arms support for the island is now closely linked to Washington’s wider relationship with Beijing.