"This proposed sale serves US national, economic and security interests by supporting the recipient's continuing efforts to modernise its armed forces and to maintain a credible defensive capability," it said in a statement.
"The proposed sale will help improve the security of the recipient and assist in maintaining political stability" as well as military balance and economic progress in the region.
"The recipient will be able to employ a highly reliable and effective system to increase their warfighting effectiveness as needed, which can counter or deter aggressions by demonstrated precision against surface targets," it said.
Taiwan has been regularly detailing Chinese activities close to the island. On Wednesday, its Ministry of National Defence said a Y-8 aircraft had entered its airspace.
China regards Taiwan as a renegade province and has reacted furiously to previous US arms sales to the island. The Trump administration has stepped up military and diplomatic support for Taiwan in recent months, including offering significant backing for its efforts to combat the coronavirus pandemic.