Taiwan’s Chung-Shan Institute of Science and Technology (NCSIST) signed a memorandum of understanding (MOU) with Leonardo DRS, which has a U.S. subsidiary, aiming to advance the modernization of the Taiwan Army’s M60A3 tanks.
The agreement establishes that both parties will market modular upgrade kits for the tanks’ fire control and targeting systems. According to CNA, the deal will leverage NCSIST’s engineering expertise and Leonardo DRS’s international sales network.

Improvements developed by the Taiwanese institute include a digital fire control system, electrical cannon control systems, and high-resolution sights to increase firing accuracy. Leonardo DRS confirmed that the 105 mm cannon will be retained, a decision driven by market demand and cost considerations, avoiding a full conversion to a 120 mm weapon.
The proposed upgrades incorporate a hunter-killer capability and a remotely controlled turret, enhancing cannon stability and improving first-shot accuracy. An aluminum mesh coating around the turret provides basic protection without overloading the engine. The –killer system allows the gunner to designate one target and immediately switch to the next, reducing response times in combat compared to older models.

Leonardo DRS Vice President Alan Mosher expressed satisfaction in participating in strengthening Taiwan’s defense capabilities. The former U.S. Army colonel highlighted that this modernization “provides the necessary improvements for operations on the modern battlefield.”
However, in August, local media reported that the Taiwan Army was considering canceling the M60A3 modernization program, originally acquired from the U.S. in the 1990s. The potential cancellation is reportedly due to technical difficulties in integrating a new 120 mm cannon and the ongoing incorporation of M1A2T Abrams tanks.
The modernization project, launched three years ago, had two main lines: replacing the old engines with AVDS-1790 diesel models and developing a new fire control system linked to a 120 mm turret. While engine replacements have progressed as planned, with 460 engines purchased and replacement expected to be completed before 2028, the new fire control system has faced technical obstacles that limited its progress.

In parallel, the Taiwanese Army received the first batch of 38 M1A2T Abrams tanks in December 2024 under a $2 billion U.S. contract for 108 units. During a recent inspection, President Lai Ching-te observed training exercises with the new platforms, noting that “each exercise helps strengthen combat power, protect national and public security, and preserve regional stability.”
The Abrams delivery plan continues over the coming years: 42 units in 2025 and 28 in 2026. These will gradually replace the M60A3 and CM-11 Brave Tiger tanks, which have served for decades despite various upgrades.
Thus, the Leonardo DRS and NCSIST initiative unfolds in a context marked by Taiwan’s armored forces transitioning to more modern platforms, while uncertainties remain regarding the continuation of the M60A3 modernization.
*Images for illustrative purposes
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