Taiwan will overhaul 16 Rolls-Royce T56-A-14 turboprop engines under the auspices of the US Foreign Military Sales mechanism.
Worth $10.6 million, the work will be undertaken by StandardAero-San Antonio in Texas, the US Department of Defense says in a brief statement on its website.
The contracting agency for the work is the US Naval Air Warfare Center Aircraft Division, and the project is expected to be completed in February 2014.
Taiwan is obtaining 12 former US Navy Lockheed P-3C Orion maritime patrol aircraft, with deliveries to commence this year.
Powered by four T56 engines, the P-3Cs will replace the Grumman S-2 Tracker aircraft now operated by Taiwan's navy.