Taipei [Taiwan], May 3 : Taiwan is rapidly developing its drone industry with twin goals: strengthening defence against a potential Chinese invasion and expanding exports to global markets. Officials and manufacturers say international orders are essential for scaling production and sustaining growth in the face of fierce competition from China, Taiwan News reported.
In his 2024 inaugural address, President Lai Ching-te vowed to make Taiwan "the Asian hub of UAV supply chains for global democracies," according to The Economist. His pledge follows a 2022 remark by former president Tsai Ing-wen, who highlighted how drones provided a significant tactical advantage to Ukraine in its war with Russia.
Former US officials have also pressed Taiwan to expand its drone capabilities, calling for the creation of an "unmanned hellscape" across the Taiwan Strait. The vision includes deploying thousands of drones and other unmanned systems to deter and complicate any potential invasion by China, reported Taiwan News.
To meet defence needs and build export capacity, Taiwan has set an ambitious target of producing 15,000 domestically made drones per month by 2028. The government has established a dedicated research centre, awarded procurement contracts for military drones, and provided subsidies to firms working on key technologies such as flight controllers and AI-powered imaging chips.
Alongside its defence priorities, Taiwan's drone sector is eyeing international opportunities. Manufacturers are marketing themselves as part of a "zero-red" supply chain, aiming to appeal to buyers wary of Chinese technology. The US, for example, has banned the use of Chinese drones by its government and armed forces, further opening space for Taiwan in the global market.
Still, the industry faces significant challenges. The Ministry of Economic Affairs has acknowledged that domestic companies struggle with scale and must secure more international orders to become globally competitive. China's dominanceholding 80 per cent of the global drone marketallows it to keep prices lower, Taiwan News reported.
Coretronic manager Andy Hsin said Taiwan-made drones cost 25 per cent more than Chinese models. Thunder Tiger, another Taiwanese drone company, has responded by planning to manufacture some components in California.
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