The propulsion system comprises a ramjet engine with a solid-fuel rocket booster, which is an upgraded version of the supersonic vehicle prototype revealed in June 1999, the magazine said in its August 13 edition.

The details were shown in material distributed by the military-run Chung-Shan Institute of Science and Technology, developer of the earlier version of Hsiung Feng III, at the Paris Air Show in June.

"This supersonic vehicle can be fitted with a variety of guidance systems and turn into anti-ship, land-attack or anti-radiation missiles," the magazine cited a Taiwanese military-industry source as saying.

The Hsiung Feng III development project was 80 percent complete following a test in September last year, with the entire program expected to be finished in two years, local media has reported.

The new Hsiung Feng III is believed to outperform China's Russia-made SS-N-22 Sunburn supersonic anti-ship missile.

Taiwan is striving to beef up its missile defense capability in a bid to counter military threats from China.

In a report released Wednesday last week, the United States warned that currently China's most immediate threat to Taiwan is a force of 450 short-range ballistic missiles in the Nanjing Military Region across the Taiwan straits.

Beijing has regarded Taiwan as part of its territory awaiting reunification since the two split in 1949 and has repeatedly warned it would consider using force against the island if it tried to declare formal independence.

WAR.WIRE