The U.S. military signs a $20.7 billion AMRAAM missile contract with Raytheon, pending funding from Congress

The U.S. Department of War has signed a multi-year contract worth US$20.7 billion (approximately NT$658 billion) with Raytheon, a subsidiary of major military contractor Raytheon Technologies (RTX), to accelerate production of the Advanced Medium-Range Air-to-Air Missile (AMRAAM). The contract is still subject to congressional appropriation.

Reuters reported that in addition to providing a large amount of weapons to its allies, the United States is also using ammunition in military operations against Iran, triggering concerns about the stockpile of key air defense weapons and precision-guided weapons.

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AMRAAM can be used in fighter air-to-air combat and can also be used with the National Advanced Surface-to-Air Defense Missile System (NASAMS). NASAMS is used for air defense in the Washington area and is used by more than 10 countries around the world, including Ukraine, Oman and Qatar.

The potential AMRAAM contract is the latest in a series of large ammunition procurement contracts being pushed by the U.S. Department of Defense this year in an effort to pressure defense contractors to increase production more quickly.

The above contract model is similar to the US$58.6 billion (approximately NT$1.863 billion) Patriot interceptor missile contract awarded to Lockheed Martin by the Department of War in July. The latter is a seven-year procurement plan that will last until fiscal year 2032.

However, industry leaders warn that the U.S. Congress has not yet allocated enough funds to cover the full multi-year commitment, which means that contractors may not be able to invest on a large scale in components and production facilities until Congress takes action.

If the U.S. Congress ultimately allocates relevant funds, the contract will enable RTX to continue investing in manpower, supply chain and production facilities as demand in the United States surges. RTX noted that the company’s AMRAAM production in 2025 has nearly doubled compared to 2024.

The contract will also form part of the War Department's Arsenal of Freedom initiative. RTX confirmed earlier this year that it would set the annual production target of AMRAAM to at least 1,900 pieces.